Trade Republic, which lets people buy and sell shares, exchange-traded funds (ETFs), derivatives and (most recently) cryptocurrency by way of a mobile app that does not charge commissions (but does have a fee structure for various services), has raised $900 million in a Series C round of funding that values the Berlin startup at $5.3 billion, the startup confirmed.
The round has a very strong bench of investors behind it. It is being led by Sequoia, with new backers TCV and Thrive Capital, as well as previous backers Accel, Founders Fund, Creandum and Project A, also participating. Accel and Founders Fund co-led Trade Republic’s Series B a year ago.
The investment catapults the Berlin-based startup into being one of the biggest privately-held fintech businesses in the region, and while Trade Republic is currently only active in Germany, Austria and France, Christian Hecker (who co-founded the company with Marco Cancellieri and Thomas Pischke) said the startup will be using the funds to expand to many more countries (which will include not just sorting out licenses to do so, but implementing larger regional operations, hence the large round of funding).
“It’s our ambition to be present across the entire Eurozone in the next four months,” he said in an interview. That might logically start with the biggest markets in the region, which would mean Spain and Italy, followed by Benelux, Ireland, and Finland.
Hecker’s view is that what Trade Republic provides is a resource that everyone should be able to access. “It really hurts me to see that the those demographic or macroeconomic factors [that are impacting users in Germany, France and Austria] are basically burning all continental European countries. So I think that’s really, really important we launch in all of those nations.”
Sequoia has been a strong investor in fintechs, backing the likes of Klarna and Nubank, and this comes as the firm is expanding its reach in the region after opening its first European office, in London.