MoneyFarm launched in Italy in 2012 and arrived in the UK earlier this year.
The deal will give Allianz Ventures a minority shareholding , estimated to be worth $7m, in the company and could see MoneyFarm making active funds available through automated advice during 2017.
Solmaz Altin, chief digital officer of Allianz, said: “The combination of online and offline advisory has become a key trend in the wealth management space enabled by technology.
“Based on the partnership with MoneyFarm, we will further drive innovation to provide better experience to our partners and customers.”
MoneyFarm’s service offers six portfolios, with clients recommended an option after working through a questionnaire to establish their attitude to risk.
It also offers regulated investment advice, which its clients can access digitally or over the phone.
Paolo Galvani, chairman and co-founder of MoneyFarm, said: “This investment is an endorsement of what we have achieved so far and also an indication that we have so much potential ahead of us.
“It is becoming increasingly clear that existing players in this space have barely scratched the surface of possibilities.
“Across the whole investment lifecycle there is a need for a better model and a better solution. All the feedback we get from our customers is that this is exactly what they have needed.”
He added that the company has a “relentless focus” on fulfilling its customers’ needs through user-friendly technology and excellent portfolio performance.
Earlier this year Mr Galvani told FTAdviser his experiences of launching robo-advice had proved some of his preconceptions wrong, with the middle-aged proving keener on it than millennials.
He also said MoneyFarm is already looking at launching the service in a third European country.
MoneyFarm’s launch in the UK earlier this year followed a funding round which saw it raise €16m (£13.9m) from UK specialist services investor Cabot Square Capital and Italian investor United Ventures.
It charges nothing for the first £10,000 which is invested and 0.6 per cent for investments between £10,001 and £100,000.
Investments between £100,001 and £1m are charged at 0.4 per cent while those above £1m are free.