Berlin-based fintech Raisin plans to use the investment to finance the expansion of its deposit marketplace into the US market in 2020
The Raisin founding members (Credit: Raisin)
Goldman Sachs has made a €25m ($28m) investment into Germany-based savings fintech Raisin, bringing the disruptor’s overall funding to €195m ($218m).
Raisin operates throughout Europe with an online “deposit marketplace” designed to give customers access to a range of different savings and investment options from across the continent.
It intends to use this new capital from the US banking giant to expand its presence in America ahead of a planned launch in the $12.7tn savings market next year.
CEO and co-founder Dr Tamaz Georgadze said: “This investment from such a renowned brand is a very encouraging confirmation for us that our core business, as well as growth strategy, are on the right track.
“We’re really proud to have Goldman’s backing, especially given the expertise in investment products, along with an extraordinary 150-year history and record of success.”
German fintech Raisin offers a marketplace platform for savings and investment
Berlin-based Raisin operates a “deposits-as-a-service” model designed to provide access to a choice of investing options to consumers from across the European Economic Area.
It currently partners with 80 financial institutions in Europe, offering more than 480 different savings products to its 185,000-strong customer base.
Since launching in 2013, Raisin has brokered more than €14bn ($15.6bn) in investments through its marketplace platform.
Following on from a Series D investment round earlier this year in which the likes of Index Ventures and PayPal contributed to a $114m capital injection, Goldman Sachs has now decided to back Raisin as it gears up for US expansion.
Goldman’s managing director for principal strategic investments Rana Yared said: “Raisin has developed a unique savings marketplace with a solid business model, impressive growth and a loyal customer base.
“We are excited to support the company’s outstanding management team in executing their vision.”
Earlier this month, Ms Yared spoke at the Wharton Global Forum in London about the importance for banks like her own to keep a close eye on investment opportunities in the fintech space, and Raisin has clearly been identified as a worthwhile prospect by Goldman Sachs.
Raisin has been a key part of European fintech disruption
Raisin – which operates under the brand name WeltSparen in the German-speaking world – was founded in 2012 by Dr Georgadze alongside CFO Dr Frank Freund and COO Michael Stephan, and has worked closely within the guidelines of European open banking and PSD2 regulation.
It has grown to include six country-specific savings platforms in Germany, the UK, France, the Netherlands, Spain and Austria, as well as providing marketplace access to customers in 28 other European nations.
Working partnerships have also been formed with other financial institutions in Europe, including N26, Commerzbank, Telefónica Germany’s O2 Banking and Yolt.
In addition to US expansion next year, Raisin plans to use the recent funding to improve its existing technology, hire new talent and add more products to its portfolio.