Today the German digital wealth manager Scalable Capital has announced raising an additional €50 million in a Series D financing round, taking its total raised since founding to €116 million. The funds will be used to further accelerate its growth in wealth management, brokerage and its B2B business. All existing investors participated in the funding round, as well as one new, including BlackRock, HV Holtzbrinck Ventures and Tengelmann Ventures.
When founded in 2014, Scalable Capital’s goal was to democratise wealth management and to make investing easier and cheaper through technology. Today customers can invest their money through the robo advisor and trade actively with the broker. The broker, which was launched in June, is the first one to offer a true trading flat rate (“Prime Broker”), where retail investors can trade shares, funds and ETFs or make savings plans on ETFs for €2.99 per month with no additional fees. Furthermore, Scalable Capital provides access to attractive overnight and fixed-term deposit offers.
“In times of Covid-19, our funding round is a powerful signal; it shows that our focused, digital business model is convincing the investors”, says Erik Podzuweit, co-founder and co-CEO of Scalable Capital. “Just recently, we launched our Scalable “Prime Broker” with trading flat rate with great success. It is interesting to see that the clients of our broker are on average 10 years younger than our wealth management service. We will use the additional capital to expand our position as the market leader in digital wealth management and to reach new customer segments with the broker”.
“We established Scalable Capital to make investing easier and better through technology,” says Florian Prucker, co-founder and co-CEO of Scalable Capital. “Not only has our B2C business grown strongly over the last few years, but Scalable Capital’s technology is also used by more and more B2B partners; most recently we launched our partnership with Barclays. With this funding round, we also want to expand our team of currently 130 employees in order to drive our expansion and the further development of our platform.”
In addition to the services for retail investors, Scalable Capital focuses on its B2B business. Since the beginning of the year, the company has established three new partnerships and strengthened its position as Europe’s leading provider of B2B platforms for digital wealth management solutions. Today, partners include Barclays, Gerd Kommer Capital, Raiffeisen Banking Group Austria, ING Deutschland, Siemens Private Finance, Openbank, Targobank, Oskar, and Baader Bank, among others.