Trade Republic raises $ 900 million and hands over one million users

Investing online in stocks and cryptocurrencies not only attracts individuals but also venture capital funds for their growth prospects. The American Sequoia has just announced an extraordinary financing round of 900 million US dollars for the German online brokerage application Trade Republic, which has been available in France since January 2021.

Between 2020 and 2021, circumstances seem to have changed dramatically and the trade republic is being pushed to the top. Last April, his previous fundraiser raised $ 67 million. Now, at nearly $ 1 billion, the company appears to have passed a new milestone. TCV and Thrive Capital funds round out the list of this gigantic C-series.

The million mark

Plans for the trade republic, which arrived in France in time to take advantage of a favorable context for private equity investment, were accelerated. Far from the previously mentioned 150,000 users, the application confirms that it has exceeded a million. Even among them, 500,000 had never bought stocks or ETFs in their lives. Trade Republic is currently believed to be responsible for $ 6 billion in client assets.

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The funds managed are very important and it has to be said that Trade Republic only charges its customers one euro per purchase transaction. With the programmed investment plan that allows you to spread your investment over time and automatically, you don’t even have to pay a commission. Users enjoy a surprisingly affordable service that needs to attract millions of customers to be profitable.

Sequoia understood that this type of model had enough to take advantage of new cash inflows. This applies in particular to cryptocurrencies that have been available for German customers of the trading republic since the beginning of May. In an interview with his co-founder Christian Hecker in January, we learned that the application was always thinking of these new development paths.

“Cryptocurrencies can become a safe haven for our money. At Trade Republic, we believe they could become a full-fledged mass market. If we were to offer cryptocurrencies in the future, our clients could diversify their investment portfolios, but we would not offer them all digital tokens as a specialized company could, ”Christian Hecker commented to Lemon Press.

In this interview, the CEO of Trade Republic affirmed, “We want to be profitable in the next three to five years.” He also stated: “We want to be present in all European countries. For the UK, depending on Brexit, everything remains to be seen. I don’t think anyone knows how things will turn out in the future, but a possible deployment seems less interesting. “

Discover the trade republic

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