Trade Republic increases valuation to 12.5 billion euros

The Berlin-based fintech Trade Republic has reached a valuation of 12.5 billion euros as part of a secondary transaction. The transaction has a volume of 1.2 billion euros and is led by the US investor Founders Fund. The aim of the round is not to raise capital for the operating business, but to strengthen the investor base in the long term.

Secondary round with new global long-term investors

In the course of the transaction, existing investors such as Founders Fund, Sequoia Capital, Accel, TCV and Thrive Capital are acquiring shares from early investors. At the same time, Trade Republic gains several new, internationally renowned investors, including Wellington Management, GIC, Fidelity Management & Research Company and Khosla Ventures. Lingotto Innovation and Aglaé, the technology-oriented investment company of the Arnault family, complete the group of investors.

Profitable growth without capital requirements

Trade Republic has been profitable for three years and states that it does not currently require any external capital for its operational growth. The secondary transaction therefore primarily serves the strategic further development of the shareholder structure and underlines the confidence of long-term investors in the business model.

Growth through a new generation of investors

Since its launch in 2019, Trade Republic claims to have acquired more than ten million customers. Around 70 percent of them are investing in the capital market for the first time. In total, the platform manages assets worth around 150 billion euros. The number of customers has doubled in the past 18 months alone.

Focus on private pension provision in Europe

Trade Republic is positioning itself as a digital savings platform with the aim of strengthening private wealth accumulation in Europe. The background to this is the increasing strain on state pension systems. According to the company, the topic is also gaining political importance, for example through reforms that promote share ownership as part of retirement provision.

This transaction underlines the fact that the cultural shift towards private investment in the capital markets is only just beginning in Europe, especially as governments such as in Germany are starting to promote share ownership as part of private pension provision through substantial pension reforms.

Christian Hecker, Co-Founder of Trade Republic.

Product and market expansion in Europe

The company has so far raised more than one billion euros in growth capital and received a full banking license from the European Central Bank in 2023. In 2025, the offering was localized in several European countries, including France, Italy, Spain, the Netherlands and Austria. Trade Republic also expanded its portfolio to include new asset classes such as private markets, fixed income and a crypto wallet and introduced a children's custody account.

Elimination of payment for order flow and social security contributions on investment income

It will be interesting to see how Trade Republic develops strategically in the future against this backdrop. On the one hand, the business model is facing regulatory changes, as the principle of "payment for order flow", which has long been widespread in Europe, will no longer apply due to EU regulations. On the other hand, the German government has yet to take concrete steps to promote private pension provision on a broad basis via the capital market. Instead of clear incentives, there have even been increasing reports and rumors that the government is considering levying pension and social security contributions on investment income in the future. For providers such as Trade Republic, this creates a complex area of tension between the growing social relevance of private investing and political and regulatory uncertainty, which could have a significant impact on further market development.