Wealth Management Firm Savvy Secures $7.3 Million in Funding

The technology-driven wealth management firm, Savvy recently announced that the company has raised $7.3 million in a seed funding round to drive the adoption of technology in the evolving wealth management industry.

Index Ventures and Thrive Capital co-led the funding round. Other leading investors, including the founders of ICONIQ, Plaid, Instacart, Figma, Opendoor, Flexport, Newfront and EPIQ joined the investment round.

Co-founded by Ritik Malhotra, Savvy was formed to address some of the key issues in the wealth management industry like the lack of technology adoption and fragmentation of services. According to the company, the funding will help the recruitment of wealth managers and the expansion of its team. Moreover, Savvy is planning to invest in research and development.

“We noticed that over the past decade, and specifically since the onset of the pandemic, that the wealth management industry was not embracing technology as quickly as the general public was. A massive amount of wealth managers still don’t offer digital communication beyond email and still conduct financial planning manually. Our goal is to build a technology-powered wealth management firm where we equip our wealth managers with advanced tools and services to advance their business, broaden their client base and allow them to spend more time with clients,” Malhotra said.

Wealth Management

The global wealth management industry is booming with record assets and surging M&A activities. In January 2022, Swiss multinational financial services provider UBS announced the acquisition of Wealthfront, an automated wealth management company, in a deal worth $1.4 billion.

Kareem Zaki, the General Partner at Thrive Capital believes that the role of technology in the financial management industry is increasing rapidly. “Savvy is leading the way on digitizing an industry that has historically struggled to keep up with evolving client needs,” Zaki commented on the funding round.