By Aisling Finn on Wednesday 22 July 2020
Founded in 2014, Scalable Capital currently manages assets worth over €2bn.
Digital wealth manager Scalable Capital has closed a €50m Series D funding round, its biggest round to-date.
The round was comprised solely of existing investors, including BlackRock, HV Holtzbrinck Ventures, which has invested in the likes of HelloFresh, SumUp and Yapily and Tengelmann Ventures, an investor in fellow fintech Klarna.
Erik Podzuweit, co-founder and co-CEO of Scalable Capital, said: “In times of Covid-19, our funding round is a powerful signal; it shows that our focused, digital business model is convincing investors.”
“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.”
To date, Scalable Capital has raised €116m with this latest round being used to help the firm expand its wealth management platform and its B2B business offerings.
Florian Prucker, co-founder and co-CEO of Scalable Capital, said: “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.”
“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.”
Just last week, the fintech launched a new digital wealth service in partnership with Barclays bank, which gives Barclays’ customers access to both active and passive funds through a discretionary portfolio management service with funds chosen and managed by the bank’s investment management team from its wealth management division.
The firm also recently launched a new ‘neobroker’ platform for its German customers, which allows customers to invest in an unlimited number of shares and ETFs for a small fee.
Interestingly, Podzuweit pointed out that the average age of the neobroker clients are “10 years younger than our wealth management service.”