PayPal backed fintech Raisin raises $114m
German group plans acquisitions and international expansion
German financial technology group Raisin has raised $114m in new funding from high-profile backers including Index Ventures and PayPal, in one of the largest fundraisings to date in Europe’s emerging “wealth tech” space.
Raisin allows customers to earn higher returns by depositing money with banks in different countries with higher interest rates. A saver in Germany, for example — where interest rates on most savings accounts are close to zero — can deposit cash in an Italian bank offering 1.25 per cent, or dollar- or krone-denominated accounts offering even higher rates.
Tamaz Georgadze, Raisin chief executive, said he wanted to create a “Schengen experience” for banking — comparing it to the EU’s passport-free travel zone.
“We want to break through unnecessary barriers to profitable saving and share the benefits of open markets — with both consumers and banks.”
Raisin has so far brokered more than $11bn in deposits, and last year widened its offering to include ETF investments with fund giant Vanguard.
The company declined to provide further financial details, but the deal is understood to value the seven year-old firm in the high hundreds of millions of dollars. It said the latest cash would be used for “strategic acquisitions” and expansion into new markets.
Raisin is one of a wave of businesses looking to take advantage of new regulations that make it easier to share financial data between different firms. It has partnered with companies such as digital bank N26, allowing it to offer Raisin’s products through its own app, and last week announced a deal making it easier for Santander customers to use the service.
Wednesday’s announcement highlights the growing investor interest in the sector, coming just two days after Goldman Sachs and HSBC invested in British start-up Bud, which builds the types of technology platforms banks use to connect to each other.