European neobroker Scalable Capital raises $180m in Tencent-led funding round
Scalable Capital, which claims to be Europe’s largest digital wealth manager, has raised $180 million in a Series E funding round led by Chinese tech giant Tencent.
The Munich-based neobroker says the funding will be used for continued product development and to boost its European expansion, despite the company shutting down its UK service earlier this year.
This latest funding round brings the firm’s total capital raised to over $320 million.
Other contributors to the round include fintechs such as N26, Lydia and TrueLayer as well as previous investors BlackRock, HV Holtzbrinck Ventures and Tengelmann Ventures.
“Tencent complements our existing long-term partners who already represent an international investor base,” says Erik Podzuweit, co-CEO and co-founder of Scalable Capital.
“Our recent funding is a major step forward on our way to becoming the leading retail investment platform in Europe.”
Since its launch in 2016, Scalable Capital has gained over 250,000 clients and claims to hold $5 billion in client assets on its platform.
The company offers online wealth management and investment tools at a relatively low cost.
Danying Ma, managing director of Tencent Investment, adds: “Demand for accessible solutions of personal investing is increasing in European markets, particularly among millennials.
“Scalable Capital excels in offering its customers a convenient and cost-efficient investing experience. We are delighted to be an investor and participate in Scalable Capital’s growth.”