Scalable Capital becomes a unicorn after new investment round

The Chinese Tencent Group acquires a stake in Neobroker. The Munich-based fintech receives a total of 150 million euros.

Scalable Capital cracks the magic unicorn mark in its latest financing round and is now worth 1.4 billion euros. The neobroker receives a total of 150 million euros. Half of the money comes from the Chinese internet company Tencent. "The demand for accessible solutions for private investing is increasing in the European markets, especially among millennials," says Danying Ma, Managing Director of Tencent Investment. "Scalable Capital distinguishes itself by offering its clients a convenient and cost-efficient investment experience." Erik Podzuweit, Co-Founder and Managing Director, told the Frankfurter Allgemeine Zeitung (FAZ): "With Blackrock, we have already had the largest Western asset manager on board since 2017. Now we have also convinced the largest Chinese venture capitalist." Tencent acquires 6.5 percent of the shares.

The Munich-based company intends to use the money for growth in the European market. More than a quarter of a million customers already manage assets totaling more than four billion euros via Scalable Capital's platform. The start-up already employs 230 people in Munich, London and, most recently, Berlin. "We are also looking for talent to drive our international expansion in Europe," said Podzuweit in a statement. "Employees can work from the office, from home or from any location - a flexibility that is highly valued and that we will maintain." By the end of the year, 400 employees will be working for Scalable Capital. The markets of France, Spain and Italy in particular are now being targeted, writes the FAZ. Podzuweit can imagine an IPO in one to two years at the earliest. Spacs have also shown interest in the fintech. "But I'm rather critical of them," the founder tells FAZ. "There are certainly good Spacs, but many just want to profit from the current stock market euphoria and advertise with celebrities who have no idea about the subject."