Let us know about free updates
Scalable Capital, a German investment platform backed by BlackRock, raised 155 million euros with fresh stocks at a valuation of around 1.5 billion euros as part of the Charles Schwab model’s push to become a pan-European investment powerhouse.
“Every European market has its own bank (..) and Pan-European Charles Schwab doesn’t exist yet,” says co-founder and former Goldman Sachs banker Eric Posiweit. “This is what we’re aiming for.”
Some of the new capital will be directed towards expanding operations in growing markets such as France and Italy, Pojwaite told the Financial Times that “the biggest chunks will sit on the balance sheet” as a buffer to support future growth.
The company is looking to increase its client assets from 30 billion euros to more than 100 billion euros within the next two to three years as it seeks to close the gap with its rival trading republic, which is based in Berlin.
Cross-border competition between European fintechs is intensifying.
Christian Hecker, co-founder of the Trade Republic, has expressed similar ambitions to become “Charles Schwab of Europe.” Its client assets range from over 100 billion euros to serve more than 8 million customers, and is actively expanding in key markets such as France and Italy by adjusting its product suites to local needs.
Meanwhile, Revolut, a UK-based digital banking group with over 55 million users worldwide, has committed to investing more than 1 billion euros in Paris’ new Western European headquarters, highlighting its ambition to gain market share on the continent.
The Scalable funding round, led by Belgian investors Sofina and European Growth Inc., brought new backers along with existing investors such as Balderton Capital, HV Capital and Tencent.
It was last valued at around 1.3 billion euros in the December 2023 funding round.
Podzuweit said Scalable is still 300 million euros raised in the previous rounds available, with about half of the 300 million euros raised in its available rounds, and is aiming to make profits next year.
Fintech infrastructure was tested in April when the market was shaken by tariff threats from US President Donald Trump, prompting a rapid, rebounding sale.
Podzuweit said trading volumes on the platform have reached record highs. Transportation surges seven times in a day, leading to record transaction fee revenue, he said.
“Who knows – if Trump produces more volatility, we might hit profitability faster,” he said.
Some users reported issues accessing accounts during peak traffic, but Podzuweit argued that these were merely “delays” rather than outages, and that the trading capabilities were not affected. German financial regulator Bafin has launched a review of broker resilience under market stress.
Recommended
Scalable is applying for a banking license in Germany, allowing it to expand its banking operations to other EU countries.
However, Podzuweit said the company’s “game changer” would be if the German government proceeded with plans to promote retail investment through tax removal or subsidized savings plans.
“Hopefully the government will still find the time and money to make it happen.”
