Scalable Capital, a Germany-based neobroker, announced that the company has secured €150 million (approximately $180 million) in a Series E funding round and received a valuation of $1.4 billion.
According to the latest announcement, Tencent, one of the leading technology companies in China, led the latest funding round. The company’s existing investors also participated in the recent round. In 2020, Scalable Capital secured nearly $58 million in funding and received a valuation of $460 million.
Founded in 2014, Scalable Capital is a startup that provides essential resources to manage investment portfolios. The company has raised a total of $320 million in equity funding to date.
Commenting on the latest announcement, Florian Prucker, Co-Founder of Scalable Capital, said: “We see huge demand to invest money in the capital markets instead of leaving it in bank accounts. This comes against a backdrop of record-low interest rates, growing inflation and a widening pension gap. Our clients can access fully managed globally diversified ETF portfolios, and in the same app, self-directed trading in shares, ETFs, cryptocurrencies and funds. We also provide a market-leading offering of ETF, stocks and crypto monthly savings plans. We are planning to launch derivatives trading next. We will continue on our mission to make everyone an investor.”
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Despite the reason that Scalable Capital previously received backing from some of the leading firms including BlackRock, HV Holtzbrinck Ventures and Tengelmann Ventures, the latest investment from Tencent is one of the largest investment that the technology firm has made in the European-based neobroker.
“Demand for accessible solutions of personal investing is increasing in European markets, particularly among millennials. Scalable Capital excels in offering its customers a convenient and cost-efficient investing experience. We are delighted to be an investor and participate in Scalable Capital’s growth,” Danying Ma, Managing Director of Tencent Investment, said in a statement.
Earlier this year, Tencent invested in the European mobile brokerage firm, BUX.