Vivid Money, a financial super app, raises $114M at an $886M valuation to expand in Europe – TechCrunch


Vivid Money, a challenger financial institution out of Berlin with 500,000 prospects, has made a reputation for itself with a monetary one-stop store “tremendous app” that, along with fundamental checking and cash administration companies, additionally consists of inventory and cryptocurrency investing. Now, because it gears up so as to add extra companies to its platform and broaden throughout all of Europe, the startup has raised €100 million ($114 million), in a spherical of funding led by Greenoaks Capital, with Ribbit Capital and new backer SoftBank Imaginative and prescient Fund 2 additionally collaborating.

The funding values Vivd at €775 million ($886 milion at at present’s charges). For some context, that is greater than double the corporate’s valuation (€360 million) when it final raised cash, a €60 million round in April 2021. Its consumer base additionally elevated five-fold in that interval, and its revenues grew 25x, the corporate stated. Vivid doesn’t share the whole quantity deposited on its platform, or any particulars about transaction volumes, however Alexander Emeshev, Vivid’s co-founder, stated it’s on track to succeed in 1 million customers by the tip of this yr.

Vivid at present is lively in 4 markets — Germany, France, Spain and Italy — and the plan will probably be so as to add 5 extra this yr, and to be out there throughout all of Europe by the tip of 2023. By way of new merchandise, the corporate is within the early phases of rolling out insurance offerings, and Emeshev stated will probably be introducing its first credit score merchandise later this yr (Vivid presently gives a Visa debit card to customers).

Launched in 2020, you possibly can name Vivid a “COVID-native” startup, with a mobile-first providing putting the best chord with its 30-something customers who had not solely been already turning away from conventional banking and funding companies, however discovered themselves spending extra time at house as a result of pandemic and reconsidering the right way to handle their monetary lives.

As with various different neo-banks, Vivid’s fundamental free banking is constructed on prime of one other supplier’s infrastructure — in its case, Solarisbank, one of many massive embedded finance gamers within the area. It augments this with extra custom-made cash administration companies that it has constructed itself — for instance, prospects can break up their cash into as much as 15 “pockets” primarily based on particular functions; cash could be moved between pockets very simply — and different personalization companies.

Alongside these core companies, newer waves of monetary companies involving cryptocurrency and different newer buying and selling codecs, like exchange-traded funds (ETFs), have been additionally gaining floor, so this was one thing that Vivid additionally got down to faucet.

“Our imaginative and prescient was to focus on Continental Europe, an enormous marketplace for funding and financial savings,” stated Artem Iamanov, the opposite co-founder of Vivid Cash, in an interview. “We knew that decentralized finance, and other forms of other funding approaches, have been booming, and that they have been probably not related to the standard banking world.”

That disconnect was not solely by way of understanding, but additionally by way of the right way to break into newer companies when your complete monetary life relies in additional conventional platforms.

Vivid’s resolution has been to create a set of companies for customers to simply study and subsequently spend money on shares and currencies utilizing their current fiat accounts. It does this by the use of a portal that offers a reasonably big selection of choices — for instance it presently has 50 cryptocurrencies from which to decide on, together with 3,000 shares and ETFs — designed to attraction to customers who’re doubtless new to the sector of decentralized finance and could be making an attempt various things out. (Amongst these new funding autos are additionally SPACs; Vivid is without doubt one of the few platforms that lets peculiar shoppers spend money on these autos within the area.)

“We noticed an enormous hole between previous and new stuff, and so we noticed a possibility to create an excellent app to provide customers entry to merchandise that intersect between these two worlds,” Iamanov stated.

Investing on the platform is free, with Vivid being profitable on alternate charges and different charges, for instance when customers spend money on U.S. shares. It additionally has created a subscription tier that it sells as “Prime” (I’m wondering how Amazon feels about that), which lets customers skip the charges in the event that they pay a flat month-to-month price of €9.90.

In a market filled with challenger banks — and a few very shut Vivid rivals resembling Sequoia-backed neobroker Trade Republic — Vivid’s backers consider the corporate’s traction and all-in, straightforward method that appeals to new shopper buyers will see the corporate choosing up extra customers and utilization because it expands.

“In simply over a yr, Vivid Cash has already constructed one among Europe’s most beloved shopper banking platforms, permitting customers to handle their total monetary lives in a single app. Since we invested final yr, we’ve been thrilled to observe their speedy tempo of latest product improvement, which has delighted current customers, attracted new prospects, and deepened the platform’s worth proposition,” stated stated Patrick Backhouse, associate at Greenoaks, in an announcement. “We expect we’re nonetheless within the first innings of a revolution in shopper banking, and we’re delighted to additional our partnership with Vivid as they proceed to scale.”



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Vivid Money, a financial super app, raises $114M at an $886M valuation to expand in Europe – TechCrunch

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