Europe’s largest digital wealth supervisor Scalable Capital introduced Wednesday that it had raised a $180m Collection E, making it the sixth German fintech unicorn.
The spherical was led by Chinese language expertise firm Tencent, which has additionally backed native fintechs like N26, Lydia and TrueLayer, and continues a pattern of Chinese language funds wanting extra carefully at European fintechs as enticing ventures. An organization spokesperson confirmed that Scalable Capital is now price an estimated $1.4b.
Scalable Capital is a neo-broker and wealth supervisor with over 250,000 purchasers and $5b in shopper property on the platform. Half of these property are invested in baskets of securities often known as exchange-traded funds (ETFs).
“We see big demand to take a position cash within the capital markets as an alternative of leaving it in financial institution
accounts. This comes in opposition to a backdrop of record-low rates of interest, rising inflation and a
widening pension hole”, says Florian Prucker, co-CEO and cofounder.
Germany’s different fintech unicorns are WeFox, Commerce Republic, Deposit Options, Mambu and N26.
Scalable Capital says it is going to use the brand new funds to broaden throughout Europe, though it not too long ago withdrew from the UK. The corporate is headquartered in Munich, with workplaces in London and Berlin.
Chinese language funding
European fintechs have seen elevated deal circulation from Chinese language traders over the previous few years.
Consultants say this has been fuelled by heightened tensions between China and the US, robust European regulation, and rising stress from Chinese language regulators on home fintechs.
The funding in Scalable Capital reveals a serious Chinese language investor branching out into new areas of fintech, past funds.
“Demand for accessible options of non-public investing is rising in European markets, significantly amongst millennials”, says Danying Ma, Managing Director of Tencent Funding in regards to the funding in Scalable Capital.
In accordance with information from Pitchbook, Tencent Holdings was probably the most prolific Chinese language VC investor in European fintech as of the start of 2021.