(Reuters) – U.K.-based online wealth manager Nutmeg said on Tuesday it raised $58.2 million (45.10 million pounds) in funding from Goldman Sachs Group Inc <GS.N>, proceeds of which will be used mainly for international expansion.
The latest funding round values Nutmeg Saving and Investment Ltd at 245 million pounds ($317.1 million), the company said.
Goldman’s investment in Nutmeg is occurring as financial institutions, especially traditional banks, spend millions of dollars to drive tech innovations in their banking operations and enhance their appeal to digitally-inclined consumers.
Banks like Goldman, JPMorgan Chase & Co <JPM.N>, Wells Fargo & Co <WFC.N> and mammoth wealth managers such as BlackRock Inc <BLK.N> have been investing in robo-advisers to overhaul their distribution models in the face of tougher regulation, take some pressure off fees and cater to the changing investment needs of a younger generation.
Nutmeg is an online investment service provider which specialises in individual savings account, pension and general investment.
Its latest funding round also saw participation from its existing shareholder, Convoy Global Holdings Ltd <1019.HK>, a Hong Kong-based financial advisory firm.
Nutmeg has raised nearly $90 million in four funding rounds, the last of which was in December 2016, according to data website Crunchbase.
(Reporting By Aparajita Saxena in Bengaluru; Editing by James Emmanuel)