Raisin, an online marketplace for savings and investment products, has closed a Series D funding round raising $114 million. This brings total funding for the Fintech to $200 million. Raisin said that existing investors Index Ventures, PayPal, Ribbit Capital and Thrive Capital all participated in the round.
Simultaneously, Raisin revealed that it has now topped $11 billion in deposits via its 62 partner banks generating $90 million in interest for savers.
Raisin said the additional funding would be utilized for “strategic acquisitions and further internationalization.”
Deposits as a Service
The Berlin-based Fintech has expanded into both the UK and the Netherlands in the past year. Raisin also operates in France, Austria, Spain, and, of course, Germany. The company said it expected to add two new markets during 2019. Raisin also expects to boost its international team as well as its line of investment products.
Raisin utilizes technology to allow savers to shop for the best interest rates available in Europe. Aided by Open Banking and technology, Raisin allows individuals to access investment products regardless of geographic borders. Competition is driven by Raisin’s seven platforms connected to partner banks – including Belgium’s biggest bank KBC, ICICI Bank UK, and the German digital banking as a service platform solarisBank. Raisin claims more than 160,000 Raisin customers from 31 different European countries.
Raisin CEO and co-founder Dr. Tamaz Georgadze explained that they want to break through unnecessary barriers to profitable saving and share the benefits of open markets for both consumers and banks.
“Our central aim is to give savers and financial institutions the ‘Schengen experience’ for banking. Our first five years demonstrate that, indeed, Raisin stands for the saving and investing of the future.”
Raisin explained that it offers banks access to flexible liquidity. In addition to its seven platforms, Raisin has built open banking partnerships this past year with banks like o2 Banking of Telefónica in Germany.
Additional partners, such as N26 and the Dutch BinckBank, has enabled Raisin to implement fully-integrated savings marketplace solutions, enabling the banks to offer their own customers a one-stop-shop portfolio with better investment opportunities, selected from Raisin’s more than 250 savings products. Raisin believes the customer experience for savers is convenient while strengthening the relationship to their primary bank.
Neil Rimer, Partner at Index Ventures, said that Raisin has realized its visionn of a single market for savings and investment:
“Using their Raisin account, people can choose savings and investment products among hundreds of offers from dozens of institutions in multiple countries and invest instantly with a few clicks. We’re excited to continue to support Raisin on its quest to create Europe’s leading destination for savers and retail investors alike.”