Scalable Capital, the Germany-headquartered operator of an online wealth management platform, has raised €150m ($183m) in a funding round led by internet and gaming group Tencent.
The round also featured undisclosed existing investors and it valued the company at $1.4bn according to TechCrunch.
Founded in 2014, Scalable has built an online platform for digital wealth management services that allows users to trade stocks and exchange-traded funds at a flat rate of about $3.65 per month. It also recently introduced a brokerage product for trading cryptocurrencies.
The company will use the financing to develop its brokerage and wealth management divisions as well as launch its offering in France, Italy and Spain. It plans to draw on Tencent’s expertise in the mobile market to attract millennials who invest through mobile-based platforms.
Tengelmann Ventures, the corporate venture capital arm of retailer Tengelmann, participated in a $58m series D round for Scalable in July 2020 that included HV Holtzbrinck Ventures, BlackRock, Monk’s Hill Ventures, German Startups Group, MPGI, Reiner Mauch, Rahul Mehta, Steffen Pauls and an undisclosed new investor.
The series D round valued the company at $463m post-money. It had secured $27.5m in a series C round in August 2019 featuring Tengelmann Ventures, HV Holtzbrinck Ventures and BlackRock.
BlackRock led Scalable’s $33.5m series B round in 2017, investing with Tengelmann Ventures and HV Holtzbrinck Ventures. The last two had joined Monk’s Hill Ventures, German Startups Group and MPGI in its $7.9m series A round the previous year.
The company had received $4.4m across two rounds in 2015 backed by HV Holtzbrink Ventures, Monk’s Hill Ventures, German Startups Group and MPGI as well as Mauch, Mehta and Pauls.