In a spherical led by Tencent, digital wealth administration platform Scalable Capital has locked in additional than $183 million (€150 million) in Sequence E funding. The brand new capital brings the corporate’s complete funding to greater than $317 million (€260 million) and offers the Munich, Germany-based agency a valuation of $1.4 billion – making the agency Germany’s, and fintech’s, newest unicorn. Scalable Capital mentioned that the financing will assist the corporate add to its workforce, in addition to assist assist enlargement into European markets like France, Italy, and Spain.
“We see big demand to take a position cash within the capital markets as a substitute of leaving it in financial institution accounts,” Scalable Capital co-CEO and co-founder Florian Prucker mentioned. “Our shoppers can entry totally managed globally diversified ETF portfolios and – in the identical app – self directed buying and selling in shares, ETFs, crypto currencies, and funds. We additionally present a market-leading providing of ETF, shares, and crypto month-to-month financial savings plans. We’re planning to launch derivatives buying and selling subsequent.”
Having Tencent as an investor, in keeping with Scalable Capital co-CEO and co-founder Erik Podzuweit, can even assist the corporate enhance its attraction to millennial prospects who’ve turn out to be more and more comfy investing through their smartphones.
A Finovate alum since 2016, Scalable Capital presents banks, insurers, and company shoppers a digital wealth administration platform that assist automated investing and rebalancing. With prospects starting from ING to Openbank (Santander’s digital financial institution) to Siemans Monetary Providers, Scalable Capital gives globally diversified, cost-efficient ETF portfolios which might be personalised to the investor’s threat profile.
Scalable Capital presently has greater than $5 billion in property underneath administration. Within the wake of this week’s funding, the corporate plans so as to add cryptocurrencies to its product portfolio, open a brand new workplace in Berlin, and double its workforce this yr to 400.
Scalable Capital started the yr with a pivot: the corporate introduced in January that it will proceed its direct to shopper enterprise in Germany and Austria, however will restrict its operations within the U.Ok. to its B2B enterprise. The price of buyer acquisition was cited as one of many challenges to the corporate’s retail ambitions within the U.Ok. and, as such, Scalable Capital determined to concentrate on enlargement and improvement with its German platform and its B2C and wealth companies.
Additionally this yr, Scalable Capital introduced the appointment of latest Chief Technique Officer Dirk Urmoneit. Urmoneit involves the corporate after holding senior positions at index supplier Solactive AG and funding banks J.P. Morgan and Goldman Sachs.
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