Open banking pioneer Deposit Solutions has received a $500m valuation following a new investment from European buyout house Vitruvian Partners.
The $100m supplied by Vitruvian, Kinnevik and other existing shareholders follows huge growth of Deposit Solutions’ proprietary points of sale Zinspilot and Savedo over the past nine months, which more than doubled their volume of transmitted deposits to over €9bn.
A spokesperson for Vitruvian said, “As a pioneer of open banking Deposit Solutions has shown remarkable performance in rolling out a true innovation and enabling a marketplace for one of the most important product categories in banking.
“The company already operates the leading platform for savings deposits in Europe. With our expertise in scaling high growth technology companies we will help accelerate the growth of the business even further.”
Deposit Solutions’ platform aims to allow banks to easily gain access to deposit funding from the clients of other points-of-sale in different markets, without having to set up and operate their own deposit infrastructure for those customers.
The company says it now connects more than 70 banks from 16 countries to more than 30 million savers, through points-of-sale including financial institutions such as Deutsche Bank and Fidelity’s FFB.
Late last year, Deposit Solutions raised $20m in an investment round from its existing shareholders. Including the newly deployed $100m investment, the company has raised a total of $145.5m in equity funding.
Vitruvian closed its third fund on its €2.4bn hard cap last year, making it one of the biggest pools of capital in Europe targeting growth deals. The sum doubled Vitruvian’s second fundraising total thanks to “significantly greater support” from German, Japanese and Nordic investors this time out, the firm said at the time.
Earlier in the year, the firm led the $65m investment into fellow German FinTech company smava. The company offers consumers a digital loan portal with an overview of more than 70 loans., spanning from personal loans to car financing.
Copyright © 2018 RegTech Analyst
Copyright © 2018 RegTech Analyst
