Singapore-based digital wealth management platform Endowus saw its losses increase in 2023 even as its revenue more than doubled, according to regulatory filings reviewed by DealStreetAsia.
The company, licensed by the Monetary Authority of Singapore, posted a revenue of S$19.8 million (US$15.4 million) for the year ended 31 December 2023, marking a 2.4x increase from the previous year’s figure of S$8.3 million (US$6.6 million).
Despite the revenue jump, Endowus’s net losses grew by 10.5% year-on-year to S$30.6 million (US$23.8 million), largely attributed to rising operational costs.
Employee compensation represented a major portion of the expenditures, increasing to S$35.2 million (US$27.4 million) from S$22.9 million (US$17.8 million) the previous year.
In addition, administrative expenses climbed to S$16.1 million (US$12.5 million) from S$12.6 million (US$9.8 million).
A company spokesperson told DealStreetAsia that the majority of the expense growth came from non-cash accounting items, including adjustments in the value of employee stock ownership plans (ESOPs) and convertible note revaluations.
These items, while reflecting the company’s rising value, do not impact cash flow.
Founded in 2017, Endowus provides digital wealth advisory and financial planning services to its clients, with revenue growth in 2023 driven by several streams.
Income from financial advisory services increased to S$9.4 million (US$7.3 million), while retrocession fees surged to S$6.5 million (US$5.1 million), a notable jump from S$1.2 million (US$1 million) in 2022.
Fund management fees also saw a rise, reaching S$3.1 million (US$2.4 million).
In 2023, Endowus secured US$35 million in a funding round backed by Citigroup’s venture capital unit and MUFG Innovation Partners, alongside participation from prominent families in Asia.
The firm also expanded its services to Hong Kong in 2022, marking its first move beyond Singapore.
Featured image credit: Edited from Freepik
