Upvest is gearing up for significant UK expansion following a recent €100m (£83m) Series C funding boost.
- The fundraise, spearheaded by Hedosophia, aims to bolster Upvest’s position in London’s financial market.
- Key plans include hiring 50 additional staff members to enhance the company’s UK operations.
- Upvest recently secured FCA approval, enabling UK fintechs to leverage its investment API.
- The company is poised to evolve banking solutions, facilitating seamless investment capabilities for clients.
Upvest, a German investment API firm, is poised to significantly expand its UK operations following a substantial €100m (£83m) Series C funding round, led by Hedosophia. This initiative aims to solidify the company’s presence within London’s competitive financial landscape by increasing its workforce, with up to 50 new hires planned for its UK office.
The strategic move follows Upvest’s recent approval from the Financial Conduct Authority (FCA), allowing UK-based fintechs, banks, and wealth managers to integrate and enhance their investment offerings using Upvest’s API technology. Tobias Auferoth, managing director and co-founder, expressed excitement about entering what he terms ‘the biggest financial market in Europe,’ acknowledging the requirement for modern infrastructure solutions.
Established in 2017, Upvest empowers businesses to offer diverse securities, including fractional ETFs, stocks, mutual funds, and soon derivatives, ELTIFs, and bonds in various currencies. With its efficient three-pillar structure encompassing technology, licensing, and platform connection, Upvest boasts a transformative capability, turning any business into a full-fledged brokerage in as little as four weeks. Currently, the firm processes over one million trades weekly, reflecting its prominent position in European investment infrastructures.
The recent investment round attracted funding from other significant players such as Sapphire Ventures, BlackRock, Notion Capital, and Earlybird, with plans to diversify Upvest’s product suite, double its team from 170 staff, and deepen partnerships with financial institutions. Martin Kassing, CEO and co-founder, emphasized the company’s mission to simplify investing akin to everyday spending.
Already boasting a clientele portfolio that includes renowned names like Revolut, Upvest intends to further strengthen its UK subsidiary, Upvest Securities Ltd, by appointing roles such as a head of operations, general manager, and teams for local compliance, risk, and growth. Upvest aims to capitalize on the interest from UK-based fintechs and neobanks seeking to complete or enhance their investment service offerings.
Upvest’s seamless experience with the FCA contrasts with other firms’ frustrations amid declining approval rates. Auferoth noted the smooth processing of Upvest’s license, partially attributing it to their experience and preparedness from their operations in Germany, marking a surprisingly positive encounter with the FCA’s timely processing protocols.
Upvest’s strategic expansion and robust investment highlight its readiness to revolutionize the UK fintech landscape.
