Chocolate Finance eyes 2027 breakeven amid overseas push

These days, Singapore is flush with investment products that are offering highly liquid returns on cash that beat those of bank deposits. Chocolate Finance is one such player.

The firm, which launched in 2024, targets retail customers with spare cash. It does away with some of the “hoops” that traditional finance platforms typically require of customers, like a minimum account balance.

It doesn’t charge management fees either and generates income when the underlying bond funds yield higher than the promised rate of return. But unlike bank deposits, returns are not guaranteed.

Chocolate Finance’s model has resonated with users. In the wealthtech firm’s first financial year (FY2025), it generated S$5.3 million (US$4.2 million) in revenue, its audited financial statements show.

This was for the 16-month financial period of Chocolate Pte Ltd. – Chocolate Finance’s holding company – ending April 2025. Taken on an annualized basis, its revenue would amount to around US$3.2 million.

“We believe it’s a much fairer model” compared to traditional savings accounts, and this has helped the firm grow fast, Chocolate Finance founder and CEO Walter de Oude tells Tech in Asia.

The firm is now gearing up for expansion into Hong Kong, Japan, and the United Arab Emirates in the next two years, the CEO shares, adding that the company is targeting to break even by 2027.

You earn, I earn

Since its launch nearly two years ago, Chocolate Finance has raised funds from investors like Saison Capital and Prosus Ventures. It has also recorded over 100,000 users since April last year, de Oude shares.

In Hong Kong, where Chocolate Finance recently secured regulatory approval to sell and advise on securities as well as manage assets on behalf of customers, the firm is set to officially launch soon.

It has been accepting users on a waitlist basis since late January.

In FY2025, performance fees accounted for US$3.6 million, or about 87%, of Chocolate Finance’s revenue. Performance fees refer to the return on Chocolate Finance’s portfolio of investments after giving clients their share.

The company pools deposits and invests them in low-risk bonds and money market funds, along with other forms of investments. As Chocolate Finance is not a bank, its customer funds are not insured by the Singapore Deposit Insurance Corporation.

Secondary revenue streams for the firm include card interchange fees and foreign exchange spreads, which generated US$340,000 and US$200,000 for the firm in FY2025, respectively.

New treats

Accelerated expansion

Still, as the company continues to build its international presence, de Oude says its revenue expectations for 2026 are “higher than originally planned,” though he did not provide specific figures.