Endowus grows revenue 2.5x in 2022, but losses rise to $20m (update)

Endowus’ chief executive Gregory Van (left) and chief investment officer Samuel Rhee / Photo credit: Endowus

Endowus, a Singapore-based wealthtech firm, posted US$6.1 million in revenues for the financial year ended December 31, 2022 – more than doubling its previous year’s haul of US$2.4 million.

However, the company’s expenses also increased, leading the company’s losses to balloon from US$13 million in 2021 to US$20 million in 2022.

According to its financial report obtained from VentureCap Insights, Endowus’ main revenue source was financial advisory services, which contributed US$4.5 million – almost a 2x increase from the previous year.

Expenses, however, totaled US$26.4 million – 4.3x higher than top-line revenue. The bulk came from employee compensation at US$17 million, an 81% surge compared to the previous year.

Despite the spike in losses, co-founder and CEO Gregory Van told Tech in Asia that Endowus “has a clear path to profitability in the next two years and ample cash on hand to continue investing in its growth.” It had US$10 million in cash and cash equivalents per December 31, 2022.

“We will continue to scale at a pace to allow more clients to invest better and reach their wealth goals through the fee-only, fair, and conflict-free business model which we adopt,” Van added.

In March, the SoftBank-backed company laid off less than 10% of its staff after a “sharp pullback in the financial markets and tech sector” the year prior. It also reduced hiring and took cost-cutting measures, including voluntary salary reductions by management.

At that time, Van said that Endowus’ growth trajectory had slowed down amid the volatile economic landscape.

A month later, the fintech firm expanded its digital wealth management services to Hong Kong, marking Endowus’ first entry into an overseas market.

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Update (August 3, 7:57 p.m. SGT): This article was updated to include an official statement from Endowus.