Upvest is expanding its UK operations following a successful £83m funding round, led by Hedosophia.
- The company plans to hire 50 additional staff in London to solidify its market presence.
- Upvest gained FCA approval, allowing UK fintechs to use its investment API.
- The firm has processed over 20 million orders, becoming a major player in investment infrastructure in Europe.
- Upvest aims to double its workforce and enhance product offerings with new funding.
Upvest, a Berlin-based fintech company, is set to significantly expand its UK operations after securing £83m in a Series C funding round led by Hedosophia. The capital injection will facilitate the hiring of up to 50 more staff in London, reinforcing Upvest’s presence in the UK’s financial market.
Recently granted approval by the Financial Conduct Authority (FCA), Upvest can now offer its investment API to UK-based fintechs, banks, and wealth managers. The FCA approval opens the door for these financial institutions to launch or migrate their investment services utilising Upvest’s technology. Tobias Auferoth, managing director and co-founder of Upvest, expressed excitement about entering the UK market, which he views as the largest financial hub in Europe. He noted that parts of the UK’s financial infrastructure are outdated, presenting an opportunity for new providers.
Founded in 2017, Upvest enables businesses to offer securities to their customers, including fractional ETFs, stocks, mutual funds, and soon, derivatives and bonds. The firm boasts a swift transformation process, claiming to turn businesses into full-fledged brokerages within four weeks through its integrated tech, licensing, and vendor connection platform.
This year alone, Upvest has processed more than 20 million orders for its clients, averaging over one million trades weekly. This positions Upvest as a leading investment infrastructure provider in Europe. The new funding, which also saw contributions from Sapphire Ventures, BlackRock, Notion Capital, and Earlybird, is earmarked for expanding Upvest’s product suite, doubling its workforce from 170 to 340 employees, and strengthening its partnerships with financial institutions.
Martin Kassing, CEO and co-founder, highlighted the significance of the new capital in advancing Upvest’s mission to simplify investing. The firm’s clientele already includes major names like Revolut, Raisin, and N26. Upvest is actively recruiting for various roles in its UK subsidiary, Upvest Securities Ltd, to better serve its expanding clientele, particularly targeting already licensed fintechs and neobanks with limited or nonexistent investment offerings.
Despite challenges faced by other firms in obtaining FCA approval, Upvest’s experience in Germany and comprehensive documentation facilitated a smoother process. Auferoth noted the surprise at the FCA’s adherence to processing timelines, which has typically posed difficulties for others in the sector.
Upvest’s strategic expansion into the UK, backed by substantial funding and regulatory approval, marks a significant step in enhancing its investment infrastructure capabilities.
