The Digital Horizon Venture Fund has joined the list of capital investors in WealthKernel, a provider of digital investment services and infrastructure. WealthKernel has raised $7 million in its Series A+ funding round. Already one of the leading embedded investing providers in the UK, WealthKernel will use the additional investment to support its integration of intraday trading and the expansion of its services into European markets.
The funding round was led by XTX Ventures, the venture capital arm of XTX Markets, with participation from Digital Horizon, Big Start Ventures, and WealthKernel’s existing lead investor, ETFS Capital.
The investment comes as younger and other non-traditional investment audiences have become more engaged with managing their finances and growing their wealth, causing a significant surge in the popularity of trading and wealth management apps. According to a study by App Radar, this now sees 6.4m people — approximately 12% of the UK adult population — using at least one investment app to manage their finances.
Seizing this trend, in the past year alone WealthKernel has enabled a number of diverse businesses — such as Claro Money, Wahed, and Wealth8 — to enter underserved areas of the wealth services market, covering areas from halal and ethical investment to ESG. This is driven by WealthKernel’s ambition to democratise access to wealth and investment services, and become the leading API wealth infrastructure provider in the UK and Europe.
Karan Shanmugarajah, CEO, WealthKernel, says:
“I’m incredibly excited to take this next step in WealthKernel’s journey. Our investors’ backing will not only help us bring our product to a wider audience and expand our platform, but also achieve our goal of becoming the leading provider of API-based wealth and investment infrastructure across Europe.Despite its challenges, the past year has seen our business and sector thrive, demonstrating the increasing demand for investment services from businesses and their customers alike, and the growing shift to digital wealth. Our core ambition is to lower the barriers of access to investment and wealth services for everyone.”
Alan Vaksman, Founder and Managing Partner, Digital Horizon says:
“Embedded investment products are an exciting, emerging trend transforming the capital market. It is also a really challenging segment within embedded finance, especially in terms of complying with all the necessary regulatory requirements. The WealthKernel team has done a great job becoming a leader in the UK market. Knowing their level of expertise, we are confident that the company will be successful as it expands into new markets.”
Founded in 2015, WealthKernel is a supplier of investment infrastructure for companies looking to offer digital investment services, whether as stand-alone or in addition to their present offering.
WealthKernel is vertically integrated and offers investing functionality over API, such as client onboarding, brokerage, trading, and custody. Its infrastructure is optimized for the delivery of investment and wealth-management services to everybody, not just «higher value» and HNW retail investors typically serviced by incumbents.
WealthKernel currently custodies millions of pounds for retail clients in the UK and Europe.
WealthKernel is regulated by the Financial Conduct Authority.
About Digital Horizon:
Digital Horizon is a next generation venture capital firm headquartered in London.
Digital Horizon has substituted the traditional approach to venture capital investment for its ‘new age’ methodology, which accelerates return on investment at every stage, minimizes risk and maximizes profitability. Digital Horizon supports and empowers passionate founders, especially migratory and diverse talents, who are creating enduring and meaningful start-ups.
Digital Horizon manages two multistage funds, a growth fund and a venture builder, and predominantly focuses on the fintech and enterprise software sectors. Its funds have invested in a portfolio of successful start-ups including Klarna, Lemonade, Monday. com, Ably, and Bolt.
Digital Horizon was founded in 2018 by Alan Vaksman, a venture capitalist and banker with over 20 years of experience in the UK, Europe, and Africa. It now employs almost 100 specialists with expertise in VC, IT and product development.