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Thursday, June 17, 2021

European Robinhood rival Commerce Republic raises $900 million of funding

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The Commerce Republic app.

Commerce Republic

LONDON — German stock-trading app Commerce Republic stated Thursday it raised $900 million in an enormous funding spherical that values the start-up at $5.3 billion.

The spherical, a Collection C, was led by American enterprise capital agency Sequoia, with extra backing from new buyers TCV and Thrive Capital. Present shareholders embrace Accel, Founders Fund and Creandum elevated their holdings.

Commerce Republic is basically Europe’s reply to Robinhood. The app lets customers commerce in shares and exchange-traded funds with out paying a fee. Commerce Republic makes cash from a flat 1 euro  ($1.22) fee it fees per commerce.

Earlier this 12 months, Commerce Republic added a cryptocurrency service, launching the function simply as the costs of bitcoin and different digital cash had been rallying wildly. Extra lately, crypto markets have suffered a sharp downturn.

Like Robinhood, Commerce Republic has benefited from rising curiosity from retail buyers within the inventory market. Earlier this 12 months, utilization of on-line buying and selling platforms spiked amid volatile trading in GameStop and different shares promoted on the Reddit board WallStreetBets.

Commerce Republic says Europeans are flocking to monetary markets as they battle to make a good return on their financial savings as a result of ultra-low rates of interest. The corporate now has greater than 6 billion euros in belongings underneath administration.

“Fifty % of Commerce Republic’s clients, over 500k individuals, have by no means invested in capital markets earlier than of their life,” co-founder Thomas Pischke stated in a press release. “We empower individuals to begin with wealth creation, who’ve been uncared for by large banks for too lengthy, with excessive charges and opaque merchandise.”

Based in 2015, Commerce Republic has quickly grown over time and now has greater than 1 million customers in Germany, France and Austria. The corporate has over 400 workers, and stated it plans to make use of the contemporary money to develop its enterprise and rent extra employees.

The newest money injection makes Commerce Republic probably the most invaluable fintech start-ups in Europe. The continent’s tech sector has grown dramatically over the previous decade, and 2020 marked a record year in investments in European start-ups.

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