Digital wealth manager’s turnover grew, but so did operating losses.
Nutmeg, the digital wealth manager which launched in 2012, has posted additional losses for the year of 2018 of £18.6m.
The losses rose from £12.4m in 2017 and were largely driven by marketing which accounted for a third of all Nutmeg’s operating expenses which reached £22.7m last year, up from £17m the previous year.
CEO Martin Stead told the Financial Times that “it wasn’t part of our business plan to be profitable yet. My aim is to have operational profitability [by] our 10-year anniversary.”
Overall Nutmeg’s customer base grew to 85,000, up from 50,000 at the end of 2017, with turnover rising from £4.6m to £7.2m.
Nutmeg now manages over £1.8bn in customer assets, which it places in low-cost automated investment portfolios.
This year Nutmeg raised £45m from Goldman Sachs and Convoy, a Hong Kong-based financial advisory firm, as well as £3.8m through crowdfunding.
The wealth manager also signed a partnership with Taiwan’s Taipei Fubon Bank to offer financial advice to the bank’s 5m customers, so far Nutmeg’s customer base includes 10,000 Taiwanese customers.
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