Upvest is gearing up for a major UK expansion following a significant funding round.
- The firm secured £83m in a Series C investment led by Hedosophia.
- Plans are underway to enhance its London team with 50 additional staff members.
- The company received FCA approval, allowing UK fintechs to integrate its services.
- Upvest processed over 20 million client orders this year, solidifying its European leadership.
Upvest, a German investment API company, has announced its ambitious plans to expand its footprint in the UK after closing a €100 million (£83 million) Series C funding round. The funding, spearheaded by Hedosophia, reflects strong investor confidence in the company’s potential to innovate the financial technology sector.
The firm intends to reinforce its presence in London by hiring up to 50 new employees. This strategic move follows Upvest’s recent approval by the Financial Conduct Authority (FCA) to operate as a registered investment company in the UK, paving the way for banks, fintechs, and wealth managers to utilise Upvest’s services.
Co-founder Tobias Auferoth expressed excitement about tapping into what is considered Europe’s largest financial market. According to him, parts of the existing financial infrastructure are outdated, providing an opportunity for new, dynamic providers such as Upvest to introduce modern solutions.
Founded in 2017, Upvest facilitates businesses in offering a range of securities, including stocks, ETFs, mutual funds, and soon, derivatives and bonds. The company highlights its three-pillar structure – technology, licensing, and vendor connectivity – enabling businesses to become operational brokerages swiftly.
This year alone, Upvest has processed over 20 million client orders and facilitated more than one million trades weekly, reinforcing its standing as a leading investment infrastructure in Europe. The recent funding will be utilised to expand its product offerings, double its workforce, and strengthen its partnerships with financial institutions.
CEO Martin Kassing emphasised the mission to make investing as straightforward as spending money, leveraging the additional capital to drive this goal.
Upvest’s clientele includes high-profile fintech firms such as Revolut, N26, and Raisin. Plans are in place to recruit key roles for its UK division, Upvest Securities Ltd, including a head of operations and compliance and risk teams, to further solidify its UK operations.
The company’s expansion efforts come amidst challenges faced by several firms in securing FCA approvals, as reflected in the regulatory body’s low approval rates for certain statuses in recent years. However, Auferoth noted that Upvest’s application process proceeded smoothly, aided by prior experience and comprehensive documentation.
Upvest’s strategic expansion into the UK, backed by considerable funding, signifies a substantial commitment to reshaping the investment landscape.
