Endowus secures new strategic investors in UBS, Singtel and Samsung

Singapore

DIGITAL wealth platform Endowus has secured three "strategic investors", including financial services group UBS, in a further affirmation of its business model.

The other two investors are Samsung and Singtel.

This latest investment - of which the amount is undisclosed - comes on the heels of the successful close of its Series A funding in April, which raised S$23 million from Lightspeed Venture Partners and SoftBank Ventures Asia.

In a statement, Endowus said UBS will be an important strategic partner as the largest global wealth manager. Samsung and Singtel Innov8 bring mobile technology expertise, which would help extend Endowus' reach and engagement in Singapore and the region.

Endowus plans to enter the Hong Kong market this year. To date, its assets under advisory have crossed S$1 billion, just about 18 months since its full-service launch in end-2019.

UBS is making its investment through UBS Next, a US$200 million initiative to identify new venture opportunities and target investments in fintech and the broader tech ecosystem. Samsung's investment is made through its venture capital (VC) arm, Samsung Venture Investment Corporation. Singtel Innov8 is Singtel's VC arm with assets under management of US$250 million.

Endowus chief executive Gregory Van said: "We're thrilled to count UBS, Samsung and Singtel Innov8 as our strategic investors and are humbled by their recognition of Endowus as an innovator in wealth tech. Combining their expertise in wealth management, consumer technology and venture scaling, we're confident in delivering on our promise to democratise wealth management through technology."

Samuel Rhee, Endowus chairman and chief investment officer, said: "We are excited to propel Endowus forward with our new strategic investors to enhance the leadership position Endowus has in the digital wealth industry."

He added: "The commitment from our new suite of investors, who are global leaders in their respective fields, will further fuel our mission of changing the face of wealth management, from solving for retirement to preserving a legacy."

Founded in 2017 with a startup capital of about S$9.5 million, Endowus seeks to lower the cost of investing for individuals. Its platform does not levy a sales charge and does not retain the trail fees of the funds it sells. Trail fees are the portion of funds' annual management fees paid to distributors. To ensure lower costs, it onboards the institutional share classes of funds, which carry no trail fees. If that share class is not available, it rebates trail fees to investors.

Its services include environmental, social and governance (ESG) multi-asset portfolios and a cash management solution called Cash Smart.