Technology
German fintech Deposit Solutions raises $100 million
-
Deposit Solutions has raised $100 million at a $500
million valuation. -
The German startup lets banks access capital from rival
lenders in exchange for offering better interest rates to
customers at the lender bank. -
The startup has signed up over 70 banks across Europe
to its platform, and is
backed by Silicon Valley investor Peter Thiel.
LONDON — A German fintech startup that lets people access the
best interest rates from multiple banks without having to open up
new accounts has raised $100 million to fuel its expansion.
Hamburg-headquartered Deposit Solutions said on Thursday that it
raised the sum from European private equity house Vitruvian
Partners, Kinnevik, and existing shareholders including
e.ventures. The funding round values Deposit Solutions at $500
million.
Dr. Tim Sievers, CEO and founder of Deposit Solutions, said in a
statement: “We are delighted to welcome Vitruvian and Kinnevik as
new shareholders. They are experts in supporting high-growth
companies, which makes them ideal partners for us.”
Deposit Solutions, founded in 2011, built a platform that lets
people access the best interest rates from multiple banks without
having to open up new accounts with each lender.
Imagine bank A, which offers a 2% savings account, has money
sitting on its balance sheet that it doesn’t need right now. Bank
B, meanwhile, offers a 5% savings account but needs more money.
Deposit Solutions platform lets Bank A offer its customers Bank
B’s 5% rate. Bank A then lends Bank B the money behind the scenes
and Bank B agrees to make good on the 5% interest in exchange for
the funds.
The customer gets Bank B’s 5% rate without the hassle of opening
another account. Bank A gets a happy customer who, hopefully, is
less likely to leave. And Bank B gets access to capital.
70 banks from 16 countries have registered on its platform. The
company employs 250 people across offices in Hamburg, London,
Zurich, and Berlin.
Deposit Solutions has raised just over $140 million in total from
investors including Silicon Valley billionaire Peter Thiel and US
venture capital firm Greycroft, although neither were involved
with the new funding round.
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