Fintech firm Scalable Capital secures 155 million Euros in funding from investors. - Fintech Scalable Capital receives 155 million euros in funding from investors.
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Scalable Capital Secures €155 Million in Series D Funding Round, Eyes European Domination
Scalable Capital, a prominent Munich-based fintech, has received a massive €155 million in its latest funding round, led by Sofina and Noteus Partners, reports reveal. Existing investors like Balderton Capital, Tencent, and HV Capital also participated in the round. This investment boosts the company's total funding to over €470 million, reflecting growing investor confidence in Scalable's business model.
Aiming to Be European Schwab
Co-founder Erik Podzuweit tells the Financial Times that Scalable Capital aspires to model itself after US broker Charles Schwab while becoming a "pan-European investment powerhouse." The fresh capital will be primarily used to develop the digital investment platform, create new products, and target growth markets such as France and Italy.
Steering Towards European Dominance
Scalable has been operating since 2015, offering private investors a platform for trading stocks, funds, cryptocurrencies, and private equity. The company targets increasing its managed customer assets from €30 billion to over €100 billion within the next 2-3 years, eyeing Berlin-based competitor Trade Republic.
- Slot A: Platform Integration
- Scalable seeks to fully own its trading, custody, risk management, and financial education processes to minimize third-party reliance, enhancing cost efficiency and user experience.
- Slot B: AI & Tech Innovation
- The firm plans to invest further in AI tools, offering sophisticated, yet accessible, investment technology to its 1 million+ customers by analyzing over 150 real-time risk scenarios and adjusting portfolios automatically.
- Slot C: Product Portfolio Expansion
- The new funds will be utilized to expand Scalable's digital wealth management portfolio and enhance its brokerage platform, focusing on affordable, diverse, sustainable ETF portfolios and opening up institutional-grade tools to European retail investors.
- Slot D: Financial Education & Innovation
- Providing free financial knowledge to users remains a priority, lowering the entry barrier for new investors and boosting financial literacy across the platform.
Scalable's strategic plans revolve around leveraging the latest funding round to drive vertical integration, technological innovation, and market leadership, with a focus on making financial services more accessible, affordable, and sophisticated for Europe's retail investors.
- Scalable Capital intends to integrate its trading, custody, risk management, and financial education processes, aiming to minimize reliance on third parties and improve cost efficiency and user experience.
- To further its goal of becoming a European Schwab, Scalable plans to invest in AI tools, providing sophisticated yet accessible investment technology to its growing customer base by analyzing over 150 real-time risk scenarios and adjusting portfolios automatically.
