Tencent leads $180m round for Scalable Capital

Existing investors BlackRock, HV Capital and Tengelmann Ventures also participated in the round, which values Scalable at $1.4bn post-money, according to TechCrunch.

The company intends to use the fresh capital to expand its brokerage and wealth management services, Scalable said in a statement.

Scalable is no longer accepting new customers to its UK retail business, according to its website, although the company will continue to operate there via a partnership with Barclays.

Significant funding rounds in the asset management sector in recent months include Germany-based Trade Republic, which raised $900m at a valuation of $5bn in a round led by Sequoia Capital.

Previous funding
HV Capital led a €4m funding round for Scalable in 2015, investing alongside Hill Ventures, German Startups Group and MPGI (the investment vehicle of Mato Peric, a former global director at Rocket Internet).

Scalable raised a €7m funding round in 2016 with participation from its existing investors and new investor Tengelmann.

New investor BlackRock led a €30m series-B funding round for the company in 2017, securing a significant minority stake. Tengelmann, MPGI and HV also took part in the round.

BlackRock, HV and Tengelmann backed a €25m series-C funding round for Scalable in August 2019.

The same three investors led a further €50m funding round for Scalable in July 2020. TechCrunch reported that this round valued the company at $460m.

Company
Founded in 2014 by former Goldman Sachs employees Erik Podzuweit, Florian Prucker, Adam French and Stefan Mittnik, Scalable is an investment management platform for private individuals, as well as institutions. The company launched its digital app-based platform in 2016 and operates in the UK, Germany and Austria. Individuals can trade and manage their investments via the platform, for which the firms charges a flat fee.

The company is headquartered in Munich and has additional offices in Berlin and London. The firm employs 230 people.

People
Scalable Capital – Erik Podzuweit, Florian Prucker (co-founders, co-CEOs); Adam French (co-founder).
Tencent – Danying Ma (investment director).
HV Capital – Rainer Märkle (general partner).

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