Endowus bags $70m, eyes positive free cash flow in 2 years

Singapore-based Endowus has raised US$70 million in equity funding via a round led by London-headquartered Illuminate Financial. This brings the digital investment management platform’s total funding to over US$130 million to date.

The round includes US$20 million in equity issued from the conversion of existing notes. Existing investors Prosus and Citi Ventures joined the fundraise.

The investment will open the doors to closer partnerships with Illuminate Financial’s base of limited partners, which mostly consists of large financial institutions, Endowus CEO and co-founder Gregory Van told Tech in Asia ahead of the announcement.

Endowus co-founders Sam Rhee (left) and Gregory Van / Photo credit: Endowus

Endowus plans to use the capital to scale its business in its core markets of Singapore and Hong Kong, fund a new B2B solution for financial advisors and external asset managers, and invest in AI.

While there wasn’t an immediate need to raise capital, the money and new backers will be helpful to the firm’s next stage of growth, Van adds.

“Strongest year ever”

According to its audited financial statement for 2024, Endowus Technologies Pte. Ltd. grew its revenue by 61.2% to US$24.6 million, up from US$15.3 million in the previous year.

However, Endowus’ revenue uptick in 2024 was outpaced by a 19.4% jump in its expenses. This narrowed its net loss before taxes by 11.2% to US$20.9 million.

Endowus Technologies is the firm’s registered entity in Singapore. The group includes subsidiaries such as Hong Kong-based wealth manager Carret Private Capital, which was acquired in 2022.

As of September, Endowus has surpassed US$10 billion in assets under management, fueled by demand from the high-net-worth segment and for alternative investment products like hedge funds and private markets.

That’s on par with Syfe, a competing wealthtech platform in Singapore. Earlier this year, Syfe announced that it hit the same amount in assets under management at the end of 2024.

Endowus’ revenue is directly related to the amount of client assets on its platform, according to Van.

Unlike most brokerage houses, he notes that Endowus’ revenue is not derived from transaction volumes. “We charge a flat asset-based fee to the client directly, and we rebate 100% of commissions that we get from product providers,” he explains.

“As a result, our client assets growth is the no. 1 priority,” he adds.

B2B foray

New shores, new features