German neo-broker Trade Republic raises $900m in series C funding
With more than €6bn in customer assets, German neo-broker Trade Republic has raised $900m in a series C funding round, led by Sequoia alongside TCV and Thrive Capital. The fintech’s historical investors Accel, Founders Fund, Creandum and Project A had also participated in the funding round, which turned out to be the largest financing rounds in the industry. With its current valuation of $5.3bn, Trade Republic is steadily becoming Europe’s leading privately-owned fintechs.
Started with an aim of democratising market access through its app and investment platform and plugging the pension gap for Europeans, Trade Republic has over a million customers in Germany, France, and Austria. Christian Hecker, co-founder of Trade Republic, said that everyone should benefit from economic growth, for which there is a need for a savings and investment platform accessible to all. In addition to its long-term investment plans and a flat fee of one Euro per order on equities and ETFs, Trade Republic has recently added crypto currencies to its investment offering.
Sequoia, which is known for its investments in tech giants such as Apple and Google, is making one of its largest initial investments in its history in Europe. The democratisation of access to capital markets will be a key trend in the coming decade, said Doug Leone, Partner at Sequoia. Hecker added that the funds raised will be used to expand the fintech’s operations in Europe and hire talent globally.
Hecker and his colleagues started Trade Republic in 2015 but spend the first four years applying for licences to build a neo-brokerage bank from scratch, launching in Germany in 2019. The fintech had raised €62m in its series B round, co-led by US venture capital firms Accel and Founders Fund.