Roboadvisor Scalable Capital Secures 0 Million in New Funding
Roboadvisor Scalable Capital Secures 0 Million in New Funding

In a round led by Tencent, digital wealth management platform Scalable Capital has locked in more than $183 million (€150 million) in Series E funding. The new capital brings the company’s total funding to more than $317 million (€260 million) and gives the Munich, Germany-based firm a valuation of $1.4 billion – making the firm Germany’s, and fintech’s, latest unicorn. Scalable Capital said that the financing will help the company add to its workforce, as well as help support expansion into European markets like France, Italy, and Spain.

“We see huge demand to invest money in the capital markets instead of leaving it in bank accounts,” Scalable Capital co-CEO and co-founder Florian Prucker said. “Our clients can access fully managed globally diversified ETF portfolios and – in the same app – self directed trading in shares, ETFs, crypto currencies, 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.”

Having Tencent as an investor, according to Scalable Capital co-CEO and co-founder Erik Podzuweit, will also help the company improve its appeal to millennial customers who have become increasingly comfortable investing via their smartphones.

A Finovate alum since 2016, Scalable Capital offers banks, insurers, and corporate clients a digital wealth management platform that support automated investing and rebalancing. With customers ranging from ING to Openbank (Santander’s digital bank) to Siemans Financial Services, Scalable Capital provides globally diversified, cost-efficient ETF portfolios that are personalized to the investor’s risk profile.

Scalable Capital currently has more than $5 billion in assets under management. In the wake of this week’s funding, the company plans to add cryptocurrencies to its product portfolio, open a new office in Berlin, and double its workforce this year to 400.

Scalable Capital began the year with a pivot: the company announced in January that it would continue its direct to consumer business in Germany and Austria, but will limit its operations in the U.K. to its B2B business. The cost of customer acquisition was cited as one of the challenges to the company’s retail ambitions in the U.K. and, as such, Scalable Capital decided to focus on expansion and development with its German platform and its B2C and wealth businesses.

Also this year, Scalable Capital announced the appointment of new Chief Strategy Officer Dirk Urmoneit. Urmoneit comes to the company after holding senior positions at index provider Solactive AG and investment banks J.P. Morgan and Goldman Sachs.

Photo by Jenna Hamra from Pexels

The post Roboadvisor Scalable Capital Secures $180 Million in New Funding appeared first on Finovate.

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