Goldman Follows PayPal With Funding in German Startup

By Stephan Kahl and Stefan Nicola

(Bloomberg) -- Just some months after main a funding spherical for Berlin-based fintech firm Elinvar, Goldman Sachs Group Inc. is backing one other startup within the German capital.

The U.S. lender is investing 25 million euros ($28 million) in Raisin, an web platform for bank-savings merchandise, in trade for a low single-digit proportion stake. The brand new funding brings the entire quantity of major investments within the startup agency to 195 million euros. Earlier backers embody PayPal Holdings Inc.

Raisin intends to make use of the cash to enter two further European markets and the U.S. It has employed robo adviser Wealthfront’s Paul Knodel to create its American enterprise. “Our objective is to begin within the U.S. in 2020, the earlier the higher,” Chief Monetary Officer Frank Freund mentioned in an interview. A few of the cash raised may be used for acquisitions, he mentioned.

Berlin has turn into a hotspot for formidable German fintech corporations: Peter Thiel-backed smartphone financial institution N26 can also be increasing to the U.S., whereas banking platform supplier Elinvar was arrange by former staff of Deutsche Financial institution AG.

Raisin was based in 2012 by Tamaz Georgadze, who's chief government officer, Freund and Michael Stephan. Thus far, the corporate has brokered 14 billion euros in clients deposits to 80 accomplice banks. Freund expects that quantity to extend towards 20 billion euros by the tip of this yr. On Raisin’s web site, monetary establishments provide their financial savings merchandise, primarily competing on rates of interest.

“Raisin has developed a novel financial savings market with a strong enterprise mannequin, spectacular progress and a loyal buyer base,” mentioned Rana Yared, managing director at Goldman Sachs Principal Strategic Investments.

To contact the translator on this story:
Stephan Kahl in Frankfurt at [email protected]

To contact the interpretation editor chargeable for this story:
Stephan Kahl at [email protected]

Reporters on the unique story:
Stephan Kahl in Frankfurt at [email protected];
Stefan Nicola in Berlin at [email protected]

Editors chargeable for the unique story:
Erhard Krasny at [email protected]
Andrew Blackman