Scalable Capital Secures €155M, Aims to Be Europe's Charles Schwab
Fintech company Scalable Capital secures 155 million Euros in funding from investors - Fintech startup Scalable Capital raises €155 million from investors
In a recent funding round, online broker Scalable Capital pocketed a hefty €155 million. The fresh investors include Sofina, Noteus Partners, Balderton Capital, HV Capital, and Tencent. With this round, the total investment in Scalable surpasses €470 million.
The funds will fuel Scalable's expansion, particularly in digital portfolio development and innovation. Co-founder Erik Podzuweit plans to expand the platform to France and Italy, aiming to create a pan-European investment giant reminiscent of US broker Charles Schwab.
Podzuweit revealed that the funds will also be allocated to strategic partnerships, API integrations, and family-focused features. Scalable's approach emphasizes vertical integration, product innovation, and strategic partnerships to take on the fragmented European retail investment market.
The firm's platform, operational since 2015, offers various financial products like stocks, funds, cryptocurrencies, and private equity. With a target of managing customer assets exceeding €100 billion within the next 2-3 years, Scalable aims to catch up with Berlin-based competitor Trade Republic. Profitability is scheduled for next year, Podzuweit added.
Inspired by Charles Schwab's success in the US, Scalable is leveraging technology and innovation to democratize high-quality investment tools for Europeans. The company's strategy includes AI-driven portfolio management tools, educational initiatives, and a focus on retail and B2B markets.
Scalable's expansion strategy involves enhancing its verticalized platform, including trading, custody, risk management, and financial education, to lower costs and improve user experiences. It also plans to strengthen its AI-driven management tools, offering real-time risk analysis to retail investors.
Strategic partnerships are essential to Scalable's success, as evidenced by collaborations with Barclays. The company aims to consolidate the European market through strategic moves and API integrations, creating more personalized experiences for its clients.
As part of its educational initiatives, Scalable is offering interactive webinars and financial literacy tools to democratize financial knowledge, similar to Charles Schwab's approach but tailored to the European context.
With their sights set on the European market, Scalable Capital is poised to challenge the status quo and bring modern, tech-savvy investment solutions to retail investors across the continent.
Allocated funds will be utilized for strategic partnerships, API integrations, and family-focused features, as Scalable Capital aims to expand its platform to France and Italy, targeting asset management beyond €100 billion.
Aiming to become a pan-European investment giant like Charles Schwab, Scalable's expansion strategy includes strengthening its AI-driven management tools, lowering costs, improving user experiences, and offering financial literacy programs tailored to the European context.
