Moneyfarm’s losses have more than doubled during 2017, reaching £14 million.
The operating loss for the year to December 2017 is up from £6.4 million the previous year. The loss was mainly attributed to further investments in new product development and the company’s focus on ‘delivering continuous growth in the market share and customer base’.
The robo-adviser, led by CEO Giovanni Dapra (pictured), delivered a revenue of £1 million, up from £167,628 in 2016. The majority of the revenue came from the Italian branch as the company pointed out its service in the UK ‘is less mature’.
The company’s costs increased significantly over the year to a total of £15 million, comprising £5 million of staff costs, £5.7 million of marketing costs and over £4 million in other administrative expenses. In 2016, the total cost base was £6.5 million.
Moneyfarm, which now has over £400 million in assets under management, held a fund raise in May. It raised £40 million to put towards ‘further expanding our visions through our advisory service, including goal based investing, our product offering and investment proposition’.
Allianz Global Investors, which had previously held a 10.04% stake in the digital wealth firm, was among the backers.
There have been a number of other changes at Moneyfarm over the year. In June, the company revealed it will be introducing a minimum investment for its portfolios.
As of 17 July, the minimum for portfolios became £500 with a monthly direct debit of over £100.
Last year, the company said it expects to become profitable by 2019.