Singapore-based wealthtech startup Chocolate Finance grew assets under management to nearly S$1.1 billion in its first full commercial year, though it remained loss-making as it invested heavily in expansion.

Regulatory filings reviewed by DealStreetAsia show the company generated S$5.3 million (US$4.2 million) in revenue and recorded a net loss of S$6.55 million (US$5.2 million) for the 16-month period ended 30 April 2025.

The reporting window spans 1 January 2024 to 30 April 2025 and follows a change in its financial year-end from December to April, making the figures not directly comparable with the previous 12-month filing ended 31 December 2023.

Assets under management scaled to nearly S$1.1 billion during the period, while the platform’s user base crossed 100,000.

Performance fees accounted for S$4.61 million of revenue, with the remainder from card interchange and foreign exchange income.

The firm charges customers only when returns are generated, with fees accrued daily and crystallised annually.

Marketing and incentives totalled S$3.9 million, IT development and maintenance costs reached S$2.9 million, and employee costs stood at S$3.02 million, reflecting continued investment in growth.

Total equity declined to S$6.55 million from S$13.1 million as of 31 December 2023, while liabilities rose to S$5.78 million, including working capital facilities and convertible instruments.

Growth Momentum Tempered by March Withdrawal Pause

During the reporting period, Chocolate Finance temporarily suspended its instant withdrawal feature in March 2025 due to high volumes, extending processing times to three to 10 working days.

The surge reportedly followed a personal finance influencer publicly withdrawing funds after the company discontinued AXS bill payment support tied to its rewards programme.

Founder and CEO Walter de Oude acknowledged communication missteps in implementing the changes.

In July, the company raised US$15 million in a Series A+ round led by Nikko Asset Management, with participation from Peak XV Partners, Prosus Ventures and Saison Capital.

It also secured regulatory approval to operate in Hong Kong, marking its first market outside Singapore.

Chocolate Finance, which launched a pilot in August 2023 and commenced commercial operations in July 2024 after obtaining regulatory licences, said it is targeting profitability by 2027.

De Oude told DealStreetAsia that revenue expectations for 2026 are higher than originally planned and that the fresh capital will support expansion into Hong Kong, the UAE and Japan over the next two years, alongside a corporate account product in Singapore expected in the second quarter of 2026.

Featured image: Edited by Fintech News Singapore, based on image by mrsiraphol via Freepik