We’ve Raised Another $16 million USD in New Funding
Co-founder and CEO
27 July 2020
27 July 2020Share this
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Today, we announced that we’ve completed a $22.3 million SGD ($16 million USD) Series C fundraising round led by Square Peg. I’m really excited to share this news with you because it means that we can further accelerate product development to make your wealth management experience even better.
This most recent round of fundraising brings our paid-up capital to $50.7 million SGD. In this round, Square Peg, the largest venture capital fund in Australia, led the round, and Burda Principal Investments, the growth capital arm of German media and tech company Hubert Burda Media, as well as previous investor Eight Roads Ventures, the global investment firm backed by Fidelity and early investor in Alibaba, both also participated in the round.
Eight Roads led our Series B round, and their additional investment shows that they truly believe in our ability to change the way people manage their wealth, and that they are committed to making sure StashAway grows.
To be able to provide you with world-class products, the company needs top leadership, a strong and dynamic board of directors, and a relentless team. Joining our board of directors is Square Peg’s Partner, Tushar Roy, who brings with him more than 20 years of experience investing and consulting across industries and geographies. Tushar led Square Peg’s investments in other Singapore-based companies, such as FinAccel, Chope, and Doctor Anywhere.
So what does this round of fundraising mean for you?
This was never a concern of ours, but in case it was at all a question for you, let me use this opportunity to assure you: StashAway is here to stay. Our cash position has always been incredibly healthy; with 85 full-time employees, every single person on the team kept his or her job with us through and after the COVID economic crisis. In fact, we continued hiring through that period.
This deeper cash position allows us to iterate, scale, and grow to bring you the best possible wealth management experience, and also to bring that experience to more and more people in countries around the region. In other words, you can expect access to new financial planning and investment options in the near future.
A few humble brags
Since our Series B fundraising almost exactly a year ago, we’ve doubled down on financial education and product development: We introduced a free financial education curriculum within our app, and introduced a cash management portfolio called StashAway Simple™ that quickly proved that people want, well, simpler cash products. Speaking of doubling down, we’ve also almost doubled our team size, and we’ve established offices in 3 more countries (we’re now in Singapore, Malaysia, Thailand, Hong Kong, and UAE).
Just in the last year, the assets we manage have grown more than 330%. And that’s even with the recent extremely volatile market and uncertain economy. We recognise this growth as a testament to how much our clients trust us with their money.
Our investors not only appreciate the trust we have earned from you, the caliber of our team, and the quality of our products and the depth of our technology, but they also equally appreciate how our investment portfolios performed through the COVID crisis, which was yet another testament to the durability of our offering. Between 3 February and 30 June 2020, all of our portfolios endured the crash, coming out with positive total returns before fees between 1.1% to 5.0%. Since we launched in July 2017, our portfolios have generated annualised returns ranging from 11.6% for our highest risk portfolio and 4.9% for our lowest risk portfolio. Additionally, since we launched, all core growth-oriented portfolios have outperformed their respective same-risk benchmarks.
This year, the World Economic Forum recognised us as a Technology Pioneer, noting, “StashAway and its fellow pioneers are developing cutting edge technologies all over the world. Beyond their innovations, these firms are contributing greatly to improving the state of the world.” This recognition was both humbling and exciting for our team to receive, as every decision we’ve made has always been to empower people to build long-term wealth.
So if the last few years are any indication of what we’re capable of, I hope you are as excited as we are for what is to come in the near future for you.
If you or anyone in your network would like to join us, you can find a list of open positions here.
We’re here with you for the long term
Some of you want to start businesses, others want to retire early. Whatever it is that you want to do, we want you to build the wealth you need so that you can live the life you want. And that’s why I’m so happy to share with you today that our past investors and new investors have continued to provide us with the means to be with you for the long term.