Upvest, a German investment API company, is expanding its UK presence after securing substantial funding.
- The firm plans to hire 50 new staff in London to solidify its market position.
- Upvest has gained FCA approval, enabling UK fintech entities to utilize its API services effectively.
- The recent Series C funding, led by Hedosophia, will also support product and partnership development.
- CEO Martin Kassing sees the new capital as a catalyst for simplifying investment processes.
Upvest, a Berlin-based investment API provider, is set to expand its operations in the UK following a significant £83m funding round. The company aims to hire up to 50 additional staff in London, bolstering its presence in what it considers Europe’s largest financial market. This strategic move is part of Upvest’s effort to leverage its recent Financial Conduct Authority (FCA) approval to become a registered investment firm in the UK, allowing fintech companies, banks, and wealth managers to utilise its API to launch and manage their investment services.
Founded in 2017, Upvest offers B2B solutions that enable businesses to provide securities and grant users access to a wide range of financial products, including fractional ETFs, stocks, and mutual funds. The company’s three-pillar structure, which comprises technology, licensing, and vendor connectivity, allows businesses to become brokerage platforms swiftly, in as little as four weeks. This efficiency has led Upvest to process over 20 million client orders this year alone.
The recent series of investments have broadened Upvest’s financial backing, with substantial contributions from Sapphire Ventures, BlackRock, Notion Capital, and others, aiming to enhance not only its team but also its suite of products and institutional partnerships. CEO Martin Kassing regards the venture as crucial, noting the new funds will drive efforts to simplify investing, comparing it to everyday financial transactions.
Upvest’s client portfolio already boasts high-profile partnerships with companies such as Revolut, Raisin, N26, and bunq. Upvest intends to appoint a head of operations, along with other key roles in compliance, risk, and growth teams for its UK subsidiary, Upvest Securities Ltd. Tobias Auferoth, Upvest’s managing director and co-founder, remarked on the firm’s confidence in replicating continental successes in the UK market, largely due to the existing relationships with major players like Revolut.
Despite the challenging regulatory landscape where only 8% of applications for Electronic Money Institution status were approved by the FCA in 2022, Upvest has found the approval process manageable, thanks in part to its foundational work in Germany. Auferoth noted the company initially doubted its ability to secure a UK license within the year, but was pleasantly surprised by the FCA’s adherence to processing timelines.
Upvest’s strategic UK expansion underscores its commitment to revolutionising the financial market through innovative investment technology.
