Sunday 6 October 2019 5:55 pm

Nutmeg widens losses as wealth manager targets new customers

Nutmeg, the online wealth management firm, widened its losses by more than £6m last year as it invested in attracting new customers.

Operating losses deepened from £12.3m to £18.6m despite an increase in turnover from £4.6m to £7.2m, as expenses expanded to £22.7m from £17m the previous year.

Read more: Digital wealth manager Nutmeg targets ‘seven figure sum’ in crowdfunding

A third of the company’s costs were spent on marketing in 2018 as the company aimed to increase customer numbers, which grew to 85,000 from 50,000 the previous year. 

The London-based fintech, which manages more than £1.8bn, is yet to make a profit since its launch in September 2012. 

Nutmeg chief executive Martin Stead expects to turn a profit within three years.

“It wasn’t part of our business plan to be profitable yet,” Stead told the Financial Times.

“My aim is to have operational profitability [by] our 10-year anniversary”. 

Read more: Goldman Sachs bans digital wealth manager Nutmeg

In January the firm received £45m in a funding round led by Goldman Sachs’ Principal Strategic Investments Group and Hong Kong financial advisory firm Convoy. 

This summer the firm raised £3.8m through crowdfunding from more than 2,000 investors.

Main image credit: Getty