- Deposit Solutions has raised $US100 million at a $US500 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 $US100 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 $US500 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% product.
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 $US140 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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