Scalable Capital Secures Big Bucks to Conquer European Investment Market
Fintech firm Scalable Capital secures 155 million euros in funding from investors - Financial backers provide 155 million euros to tech-based investment company, Scalable Capital
In an exciting move, Scalable Capital, a Munich-based fintech company, has raked in 155 million euros in a recent funding round. This substantial injection of cash is part of a bigger plan to tackle the pan-European investment scene, reminiscent of US broker Charles Schwab. The new investors in this round included Sofina and Noteus Partners, with existing Scalable backers Balderton Capital, HV Capital, and Tencent also putting their money in. The Financial Times eyewitnessed the news and claims the company's value soared to 1.5 billion euros in this round [1][2].
To make the most of this cash influx, Scalable plans to beef up its digital investment platform, offering more innovative products to customers all over Europe. A portion of these funds will be dedicated to investing in growth markets such as France and Italy, which the company earmarks for increased presence in these markets [1][3].
Co-founder Erik Podzuweit revealed to the Financial Times that the company's vision is to become the European equivalent of Charles Schwab. He explains that, like its American counterpart, the aim is to build a robust investment platform catering to a diverse clientele across various markets. However, Scalable Capital intends to harness digital technologies to create a slicker, more accessible investment experience for European investors [1][3].
Since 2015, Scalable has been offering its services to private investors, with assets including stocks, funds, cryptocurrencies, and private equity. Podzuweit aims to escalate the company's managed customer assets from the current 30 billion euros to over 100 billion euros within the next two to three years, in a bid to catch up with Berlin-based competitor Trade Republic [2].
It seems that Scalable Capital is determined to make its mark on the European investment scene. With a solid funding round under its belt and an ambitious plan to become profitable next year, the company is primed for a significant expansion [2].
[1] Financial Times[2] Scalable Capital press release[3] Enrichment Data - Expansion Plans - Digital Investment Platform: The company plans to use the new funds to expand its digital investment platform, enhancing its offerings to clients across Europe. - New Products: Part of the investment will go into developing new products, which will further diversify Scalable Capital's services and attract more customers. - Growth Markets: A focus area for Scalable Capital is expansion into growth markets such as France and Italy. The company aims to increase its presence in these regions by investing in local infrastructure and offerings tailored to these markets. - Comparison with Charles Schwab - Scalable Capital is positioning itself as a European counterpart to Charles Schwab, a well-established US broker. - Future Outlook - With its current valuation at 1.5 billion euros and a total investment of over 470 million euros, Scalable Capital is poised for significant growth. The company's ambition to emulate Charles Schwab's success in Europe suggests a strong commitment to expanding its market share and offering a competitive suite of investment services.
Scalable Capital will utilize a significant portion of the raised funds for the development of new innovative products on its digital investment platform, with an aim to attract a diverse European customer base. The company's community policy and employment policy will likely be adjusted to accommodate the upcoming expansion, particularly in growth markets such as France and Italy. Furthermore, Scalable Capital's finance department will play a crucial role in managing the influx of funds and ensuring the company's financial sustainability during this period of growth.
