Blossom launches investment products for SMEs and SMSFs

Sydney fintech startup, Blossom, has expanded its suite of offerings to include fixed income products specifically for SMEs and self-managed super funds (SMSFs).

Blossom for Business and Blossom for SMSF will now allow these entities to invest in the Blossom Fund. This targets a diversified portfolio with a 5.95% p.a. return, following the Reserve Bank of Australia’s (RBA) November cash rate rise.

Blossom’s new offering is designed to provide a fixed-income investment option that offers daily earnings without sign-up, transfer, or withdrawal fees. The argument for SMEs and SMSFs is that it could be an option for those seeking a more flexible investment vehicle.

Since soft launching, Blossom for Business has engaged seven businesses with a combined $2.7 million in funds under management (FUM). Blossom for SMSF has reportedly attracted 10 SMSF and Trust investors, with a total FUM of $844,000.

“We set out with the intention to provide access to fixed income for businesses and SMSFs and are pleased to have achieved that. The expanded offering of Blossom for Business and SMSF reaffirms our commitment to democratising access to bonds,” Blossom co-founder and CEO, Gaby Rosenberg, said.

“Fixed income has offered a ballast of stability amidst high market volatility this year and we have seen increased demand for stable returns.

“This expanded offering has experienced pleasing uptake so far and we look forward to this trend continuing into 2024.”

Feedback from the user base indicates a positive reception. Bernice Ly, founder of Digi-Change, said she has been using Blossom for over two years personally.

“I’m pleased to now be able to do the same for my small business and boost returns on my business funds. The stability of earnings, paired with the flexibility of being able to earn returns on a daily basis, is a perfect fit for my small business as my cash holdings fluctuate regularly.”

These new product launches have been announced alongside reports that Blossom has reached a total of $40 million in FUM and 13,000 sign-ups across the business. This coincides with its most recent 5.95% targeted return increase, which has ticked upwards nine times since the company launched.

This news comes just days after Airwallex launched its new Yield product, targeting businesses wanting returns on foreign currency without opening an overseas bank account.