Digital wealth manager Scalable Capital has raised €25m (£23m) through existing shareholders Blackrock, HV Holtzbrinck Ventures and Tengelmann Ventures.
The European online investment firm, which launched in the UK in July 2016, said the funding would be primarily used to expand its software engineering team to accelerate business with retail clients. It currently has 100 employees working out of offices in Munich and London and has raised a total €66m since inception.
Scalable Capital also said the funding would be used to offer white-label services to banks, insurers and asset managers. The so-called robo-adviser has more than €1.5bn (£1.38bn) assets under management from 50,000 clients.
Back in January 2018, when Scalable had around £600,000 assets under management, it launched a fixed-fee human advice service alongside its digital offering. Often dubbed as a "robo-adviser", Scalable Capital's online service does not offer regulated financial advice but instead what it described as an online discretionary management service.
Scalable Capital CEO and co-founder Erik Podzuweit said: "This investment acknowledges our work to date and will further accelerate our growth. We want to further cement our leading market position. This new funding enables us to go after even more opportunities and to continue to invest heavily in our talent; pushing our ambitions forward across client segments."
Patrick Olsen, who is Blackrock chief product officer and a supervisory board member of Scalable Capital, said: "Since taking a minority stake in Scalable Capital in 2017, we have seen the company grow into one of Europe's leaders in digital wealth management solutions. We look forward to further supporting the team in their future expansion."
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