- London-based fintech WealthKernel has raised $7 million in a Series A extension.
- The startup provides APIs to enable fintechs to offer savings and pensions products.
- Check out the pitch deck WealthKernel used to raise the fresh funds below.
A startup that dubs itself the “AWS of investing infrastructure” has raised $7 million in fresh funds.
London-based fintech WealthKernel has developed an API that enables businesses to offer savings, investment, and pension products without having to tackle the complex regulations that govern investment apps in Europe.
Wealth tech has becoming a larger slice of the fintech pie in Europe in recent years and WealthKernel has benefited from the sector’s increased validation. Founded in 2016 and initially bootstrapped, the boom in demand for trading products and services during COVID-19 has been an additional boon for the company.
WealthKernel works with startups like Claro Money, Wahed, and Rosecut by providing compliant “rails” that they can scale their investment propositions on. The company’s API can onboard new customers, conduct trades, and manage portfolios.
“Being previously bootstrapped put us on the map and last year had tremendous growth but this funding will help us get to the next level in Europe,” Karan Shanmugarajah, CEO and cofounder of WealthKernel, told Insider. “We have done well to become a leader in this market in the UK and this funding means we can continue to expand our infrastructure.”
The funding round was led by XTX Ventures, the venture capital arm of XTX Markets, with participation from Digital Horizon, Big Start Ventures, and WealthKernel’s existing lead investor, ETFS Capital. It takes the startup’s total funds raised to-date to $14 million.
Shanmugarajah said that Spain would likely be the company’s first foray into the “fragmented” European market as it looks to get authorized on the continent. The startup has around 50 employees as it stands and will likely grow to around 70 by the end of 2022.
In the UK, at least 3.2 million people have downloaded a wealth app since the COVID-19 pandemic began in March 2020, indicated data from App Radar, an analytics platform. These conditions have led to a “perfect storm” for the company, Shanmugarajah added and indicated that the company wanted to bring in a value-add investor as it looks to capitalize on the market opportunity.
“We want to be the most dominant company in this space in this part of the world,” he said.
Check out WealthKernel’s deck below:
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