Trade Republic lands $62m in Series B funding
Trade Republic, the German equivalent to US-based stock trading app Robinhood, has landed $67 million (€62 million) in one of the largest Series B funding rounds the region has seen. The capital raise was co-led by Accel and Founders Fund.
Available in Germany and Austria, Trade Republic launched its app last year after spending the first four years of its existence building its technology and obtaining licenses to trade and operate as a bank.
It claims to have more than 150,000 customers and collectively manages more than €1 billion through its app.
It makes its money by charging €1 in fees to customers who want to buy and sell shares, exchange-traded funds (ETFs) and derivatives.
“We want to be the one-stop shop for trades, and we want to grow that as a safe space,” the start-up’s co-founder and CEO Christian Hecker told TechCrunch last week.
“We plan to introduce a sequence of savings features in the next couple of months. We see saving as our biggest growth path in the years to come.”
The firm is focusing on Europe, as well as stable asset classes, and it will hope that an imminent move into savings will further mark its difference to standard trading apps.
Trade Republic’s capital raise is not necessarily a surprise, as trading apps around the world continue to process huge volumes during the coronavirus pandemic.
Robinhood is also raising fresh capital at an $8 billion valuation, and Bloomberg sources say the trading start-up made $60 million in March – triple what it made in March 2019.