Trade Republic raises 250 million euros

Trade Republic, an online broker from Germany, has raised 250 million euros in funding. The company has now been valued at 5 billion euros. The capital will be used for product development, according to the investment platform.

Trade Republic was founded in 2015 in Germany. Through the platform, users can invest in savings plans, as well as thousands of Dutch, European and American stocks and Exchange Traded Funds (ETFs). The broker currently houses 1 million users and 6 billion euros of assets.

Valuation increased to 5 billion euros

The 250 million euros of raised capital can be added to previous funding. In 2021, Trade Republic raised as much as 900 million dollars (over 840 million euros) in an investment round led by Sequoia. The company is now valued at 5 billion euros, compared to 4.4 billion euros last year.

The company raised 900 million dollars last year.

‘Invest strongly in product innovation’

According to Trade Republic, the funds will be used for further product development. “We are amid a transformation of pension systems in Europe”, co-founder Christian Hecker says. “The financing will help us to invest strongly into product innovation to empower millions of Europeans to put their money to work.”

“We are in a transformation of pension systems in Europe.”

He adds: “Improving our valuation in the light of the current market environment is a true testament to our progress in the last twelve months and the large potential ahead.”

Over 1 million users

The broker is known for its automated stock and ETF savings plans with no commission. Instead, users pay a fixed fee of 1 euro per transaction. At the start of this year, the platform also opened its gates to crypto investments.

The platform operates in 6 European markets.

Trade Republic has been growing fast, acquiring over 1 million users in Germany, France and Austria within its first two operative years. The platform also launched in the Netherlands at the end of last year, amounting to a total of six European markets.