Moneyfarm

Moneyfarm is one of the largest online investment and digital wealth management companies in Europe, managing around GBP 2.3 billion (USD 3.1 billion) in assets as of December 2021. The platform was initially launched in 2012 in Italy, but the office headquarters are now in London after the company set up operations there in 2016. Moneyfarm has also entered Germany by acquiring Vaamo in 2018. The company has more than 84,000 customers across the UK, Italy, and Germany. Moneyfarm’s services include pension, pension drawdown, individual saving account (ISA) and general investment, with a wide range of asset classes, geographies, and currency exposures to minimize risk. Moneyfarm combines financial technology with a human touch, providing financial consultants to help clients construct investment portfolios or answer specific questions related to their individual needs. Compared to peers, Moneyfarm requires a relatively low minimum investment of GBP 1,500 (USD 1,941). Fees are similar to peer Nutmeg, ranging from 0.75% per year for the first GBP 10,000 (USD 12,941) to 0.35% for anything over GBP 100,000 (USD 129,410).

In November 2021, Moneyfarm launched a white-label digital wealth platform in the UK, aimed at helping financial advisors serve lower-income clients. The platform was to deliver advice on portfolio management, acquire new customers, and manage existing customer relationships.

In December 2021, the company announced the acquisition of Wealthsimple UK’s business book for an undisclosed amount. The purchase followed Wealthsimple’s decision to cease its UK operations and focus on the Canadian market. Through the acquisition, Moneyfarm expected to leverage Wealthsimple’s assets under management and customers to boost growth.

In 2021, Moneyfarm’s customer numbers grew by 73% YoY and assets under management (AUM) increased by 72% YoY.

In September 2019, the company raised GBP 36 million (USD 44.4 million) in Series C funding round (35% of total funding).

In January 2022, Moneyfarm raised GBP 44.1 million (approximately USD 60 million) from a private placement, which was led by M&G. The management intended to use the funds to develop its platform further, broaden its product proposition, and form strategic partnerships. Along with the funding, Moneyfarm got into a partnership with M&G that would allow it to use Moneyfarm’s technology to deliver multi-asset model portfolios and launch M&G Wealth. In addition, M&G was to also purchase a minority stake in Moneyfarm.