Berlin’s Upvest Raises €108 Million to Scale Securities Infrastructure for Banks and FinTechs

In a significant move to transform Europe’s financial landscape, Berlin-based investment infrastructure provider Upvest has announced a substantial €108 million ($125 million) funding round. This capital injection aims to modernize outdated banking systems and accelerate the growth of investment opportunities across Europe and the UK.

A Strategic Investment for Modernization

Leading the €78 million ($90 million) equity round are Sapphire Ventures and Tencent, with continued support from existing investors such as Bessemer Venture Partners and BlackRock. Additionally, Upvest is finalizing a €30 million ($35 million) debt facility, further bolstering its financial foundation.

Martin Kassing, CEO and co-founder of Upvest, emphasizes the importance of this funding: “Banks, brokers, and wealth managers choose Upvest for the infrastructure needed to grow their investment propositions profitably and at scale for a new generation of investors. This round underscores our momentum to be the top choice for financial institutions launching and scaling best-in-class investment experiences at lightspeed in Europe.”

Context and Market Positioning

Upvest’s funding round stands out in a landscape where financial infrastructure startups are seeing a steady influx of capital. Recent rounds include Devengo’s €2 million for payment infrastructure in Madrid, Open Payments’ €3 million in Sweden for B2B financial integration, and Payrails’ €27.7 million in Berlin for product expansion across EMEA.

Upvest’s €108 million raise not only surpasses the combined funding of several adjacent players but also highlights a deepening investor interest in specialized financial services infrastructure. Positioned at the forefront of modernizing legacy investment systems, Upvest is a key player alongside Germany’s burgeoning B2B FinTech ecosystem.

Insights and Implications

For startups, founders, and investors, Upvest’s success story offers valuable insights into the evolving financial infrastructure landscape. The company’s focus on providing API-based infrastructure, end-to-end trading, custody, and back-office services allows financial institutions to modernize operations, reduce overhead, and scale efficiently.

Andreas Weiskam, Partner at Sapphire Ventures, expresses confidence in Upvest’s potential: “Martin and the team have built a scalable, enterprise-grade platform trusted by the region’s most innovative banks and FinTechs – meeting the rigorous standards of the largest global financial institutions.”

Upvest’s ecosystem includes digital banks like DKB and Santander’s Openbank, as well as global FinTech leaders such as Revolut and N26. With over 100 million trades processed annually, Upvest is expanding into new asset classes, local tax structures, and AI-driven capabilities to power personalized investing.

Conclusion

Upvest’s recent funding marks a pivotal moment in its mission to revolutionize investment infrastructure for banks and FinTechs. By absorbing the complexities of local tax wrappers and rolling out AI-supported investment engines, Upvest is poised to deliver strategic advantages to its clients.

This significant capital raise underscores the company’s commitment to enabling financial institutions to bring high-demand pension products to market swiftly and cost-effectively. As retail investing accelerates across Europe, Upvest’s innovative solutions are set to empower a new era of personalized financial services, making it a startup to watch in the financial technology sector.

Source: EU-Startups