Commercial Republic It becomes the second largest private technology company in Europe, behind the banking giant Revolut with which everyone compares it. The German neobank achieved a valuation of 12.5 billion euros … after carrying out what is called a secondary operation of 1,200 million euros, through which certain investors sell all or part of their shares to give access to new shareholders. A way to provide liquidity to their investors, bring in new ones and, in doing so, update their valuation since they are not listed on the stock exchange at the moment.
“The transaction supports Trade Republic’s long-term growth plan to build Europe’s leading digital banking and savings platform,” the group said in a statement. Existing investors such as Founders Fund, Sequoia, Accel, TCV and Thrive are increasing their stake in the entity but most strikingly, new ones are entering. “The round also attracted high-profile long-term investors such as Fidelity, Wellington and GIC, as well as European family offices.” Aglae (Arnault family) and Lingotto (Agnelli family)who join the shareholders of Trade Republic”, adds the entity.
The Arnault family, headed by Bernard Arnaultis one of the most powerful families in the world and controls the largest luxury group in the world: LVMH Moët Hennessy Louis Vuitton. The family Agnelli It enjoys similar prestige, particularly in Europe; They founded Fiat (now part of Stellantis) and own Juventus FC, as well as the media.
These influxes of new investors do not represent an injection of capital but they strengthen the shareholder position of the banking group since, from now on, they rub shoulders with some of the major global funds and investors. “Over the last 18 months, we have doubled our customer base to more than 10 million people managing €150 billion in assets,” he says. Christian Heckerco-founder of Trade Republic. “This transaction highlights that the cultural shift towards retail investing in Europe is only just beginning, especially as governments like Germany push for pension reforms to encourage private equity investment among the population,” it said.
Since 2019, like this, Trade Republic multiplied its valuation by 2.5 times and it is expected that in the future they can continue to gain value, like other of their competitors. “Becoming the second technology company in Europe and the first in Germany strengthens the credibility of the model and confirms that long-term savings and investment are already a priority for millions of Spaniards and Europeans,” says Pablo López, director of Trade Republic in Iberia.
Since 2019, Trade Republic has multiplied its valuation by 2.5, in a growth reminiscent of that of Revolut
The mirror with which they are usually compared is Revolut, which has had a similar trajectory. They are both high-volume banks, with millions and millions of customers and increasingly present in more markets. In the case of Revolut, it is more global and still has a few years of life left, but its growth has been meteoric.
The British company is worth €65 billion, putting it at the top of European banks in terms of valuation. Trade Republic is still far from these levels but its very rapid evolution with enormous customer growth year after year does not go unnoticed by investors.
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