Scalable Capital received $64.7 million (€60 million) in a venture round led by Balderton Capital.
The new funds boost Scalable Capital’s total funding to $352 million (€326 million).
Scalable Capital is facing new competition, with U.S.-based stock brokerage app Robinhood entering the market this fall.
Digital investment platform Scalable Capital landed some capital of its own this week. The broker and roboadvisor announced it received $64.7 million (€60 million) in a venture round led by Balderton Capital.
The round, which saw participation from HV Capital’s new growth fund and existing investors, is an extension of the company’s 2021 Series E fund. Today’s investment boosts Scalable Capital’s Series E Round to $227 million (€210 million) and brings its total funds to $352 million (€326 million).
According to TechCrunch, Scalable Capital’s valuation with the new round sits at $1.4 billion, the same valuation the company held at its 2021 Series E round.
The Germany-based company will use today’s investment to grow its investment platform and to “capitalize on its position as a leading provider of easy and cost effective investing solutions for retail clients.”
Founded in 2014, Scalable Capital has a mission to empower everyone to become an investor. The company, which is active in Germany, Austria, France, Italy, the Netherlands, Spain, and the UK., has 600,000+ users who currently hold $17.3 billion (€16 billion) in stocks, ETFs, derivatives, bonds, commodities and crypto on its platform. The fintech’s cost for brokerage range from free to $5.39 (€4.99) per month. For users who prefer an automated approach, Scalable Capital also has a roboadvisor offering that has a varied fee structure based on the client’s holdings.
Earlier this year, Scalable Capital launched Credit, a tool that offers users access to secured loans in the Scalable Brokerage product. Residents of Germany can buy additional securities or withdraw a personal loan without having to liquidate existing positions.
As part of today’s fundng announcement, Balderton Capital General Partner Rana Yared will join Scalable Capital’s board. “Scalable’s one-stop, digital-first, wealth building and generating platform brings a suite of top-class financial products to individuals across Europe, and is unparalleled in the market. We’ve been impressed by Erik, Florian, and team’s vision and execution to date and are delighted to be supporting them in this next chapter.”
Scalable Capital recently began facing new competition in the European wealthtech market, as U.S. stock brokerage app Robinhood launched operations in the U.K. Today, the California-based company unveiled it will offer crypto trading for its European Union-based users.
Photo by Monstera Production
