Nutmeg has insisted its business model is “robust” as it promises a bright future despite its losses increasing for the third year in a row.
This morning it was revealed Nutmeg made a loss of £9.3m in 2016 – up from £8.9m the year before and £5.28m in 2014.
But the robo-advice company has said that as it scales “cost-effectively” it will move into profitability.
In the first six months of 2017 the business said its client base had more than doubled from 20,000 to 45,000 while its assets under management had gone up from £600m to £900m.
A spokeswoman for Nutmeg said: “We're here to revolutionise an industry - and doing that means investing in order to grow.
“We have very deliberately and methodically built a robust, scalable business model that has seen us double our customer numbers in the first six months of 2017 from 20,000 to around 45,000.
“Combining investment in infrastructure, user-experience and continuing to grow our customer base will ensure that the business will scale cost-effectively to deliver long-term profitability.”
In recent months the company has received funding from investors such as Hong Kong financial advice firm Convoy, which invested £24m, and Taiwan-based Taipei Fubon Bank, which invested £12m.
Nutmeg’s other backers include Schroders, Pentech, Balderton Capital and Armarda Investment Group.
Martin Stead, the chief executive of Nutmeg, claims to have tied up 80 per cent of the robo-advice market.
“We continue to invest in our products, services and people to give investors the quality they deserve.
“Our focus on innovation meant we were one of only three providers to launch a Lifetime Isa on day one, and help thousands of people under 40 invest for their first house or their retirement.”
damian.fantato@ft.com
