Trade Republic, a mobile-based investing app, has secured €62 million (appr. $67 million) in capital through a Series B funding round led by Accel and the Founders Fund.
The money raised will be used to expand the company’s line of products and services. The funds will also be allocated toward the development of a European platform for mobile saving, investing, and trading.
Established in 2015 and licensed to operate in Germany, Trade Republic may be considered the European equivalent of US Fintech unicorn Robinhood. The platform allows users to make investments in stocks, exchange-traded funds (ETFs), and derivatives products.
The Trade Republic platform is accessible from mobile devices and offers zero-fee trading.
The Berlin-headquartered company’s clients include financial giants BlackRock, HSBC, and solarisBank. Trade Republic claims more than 150,000 users.
The platform went live in May of last year. It now manages nearly €1 billion in total assets.
Christian Hecker, co-founder at Trade Republic, stated:
“About 85% of assets of European households are in bank accounts with mostly zero or negative interest rates. Our app enables people to invest their money safely, quickly, and transparently. By doing so, we are democratizing access to capital markets.”
The firm has set up a waiting list in Austria, and is planning to begin offering its services within the next few months. It also intends to expand operations into other parts of Europe.
Accel, a multinational venture capital company, has previously invested in large firms such as Facebook, Slack, and Spotify. Founders Fund, which is funded by billionaire Peter Thiel, has made strategic investments in AirBnB, Palantir, and SpaceX.
Thiel remarked:
“Trade Republic’s rapid growth in Germany testifies to the superiority of its technology platform over legacy offerings. The company is poised to become a major player in European finance.”