UK-headquartered micro-investing platform Wombat Invest has appointed David Davies, the ex-Chief Information Officer at Hargreaves Lansdown, and former eToro Managing Director Iqbal Gandham to its advisory board. These appointments have been made as the company prepares a £10m Series A round in order to support its planned expansion into European markets.
Established in 2019, Wombat claims around 160,000 users for its mobile-based trading platform, providing access to 31 different stocks and 22 theme-based curated funds. Shares currently on offer include major brands like Apple, Games Workshop, Ocado, Netflix, Tesla, among others.
Supported by Fuel Ventures, the firm previously secured £2 million through a seed round in February.
Wombat’s management noted that they’re experiencing 15% MoM user growth as new investors enter the stock market in search of sizable returns on their savings.
In July of this year, Wombat reduced its annual platform charge to only 0.1%, making it one of the most affordable platforms in the United Kingdom for ISA investors acquiring individual stocks.
Kane Harrison, CEO and Co-founder at Wombat, stated:
“The Series A funding round will support our initial expansion into Europe and help us launch and market some exciting and unique new products and features. David and Iqbal’s counsel will be invaluable as we continue on our journey and we are thrilled they have agreed to join the advisory board.”
As covered in February 2021, Wombat, a fractional investment platform, had acquired $2 million in capital via a seed funding round that was led by Fuel Ventures.
In February, Wombat claimed around 62,000 users for its mobile trading platform.
Wombat’s management stated in February that they will use funds from the investment round to make additional improvements and updates to their platform. The company plans to support trading in even more shares and funds and will roll out various new features, such as its “instant” deposits.
Wombat founder Kane Harrison had stated (earlier this year):
“A majority of people in the UK and Europe aren’t doing enough to save for their future. With banks providing all-time low interest rates, we have seen appetite for investing grow, many feel overwhelmed with the perceived complexity of handling shares. Our goal is to make investing in the stock market relatable and less scary. With a low starting point of £10, anyone can try it out.”
Wombat had also gained the backing of a well-known investor Chris Adelsbach.
As reported in March 2020, Adelsbach was supporting a crowdfunding round that was active on Seedrs. Details on how much he was investing had not been revealed at that time.
Adelsbach remarked:
“Young investors today care more than any previous generation about investing in companies that reflect their values. Wombat has spotted this trend with its theme-based funds. The care that has gone into the design and usability of the app – and the fact it’s free to use – makes it a compelling proposition.”
Stock trading has become quite popular, especially after the COVID-19 outbreak, which has led to many people spending a lot more time indoors to avoid the further spread of the Coronavirus.