Scalable Capital's Path To €1.5bn: What The Funding Round Reveals About Fintech Valuations

Scalable Capital, one of Europe’s leading digital investment platforms, has raised fresh capital in a new financing round that values the company at approximately €1.5 billion. Backed once again by global asset manager BlackRock, the raise marks a notable moment in the recovery of European fintech valuations after a prolonged correction that followed the overheated markets of 2021.

This funding is not just about one company’s growth—it reflects a broader shift in investor sentiment. As the European wealthtech sector begins to stabilise, Scalable’s valuation highlights where the market now draws the line between hype and sustainable scale. In an environment where capital is more selective, this raise is a signal that fintech platforms with solid fundamentals and strong user engagement can still command premium attention.

Deal Structure and Key Participants

While the exact size of the round was not disclosed, the standout detail was the return of BlackRock, a long-term strategic investor in Scalable Capital. BlackRock first invested in the firm in 2017 and has used the partnership to extend its reach into Europe’s fast-evolving retail investing market.

The round is believed to be predominantly primary capital—new funds that will go directly into the business, rather than secondary share sales by existing investors. Other returning backers include Tencent and HV Capital, though the current round’s lead remains undisclosed. The structure of the deal suggests confidence in Scalable’s growth path, with investors favouring companies that have transitioned from start-up volatility to predictable platform economics.

Strategically, BlackRock’s continued support aligns with its ambitions to widen distribution of ETFs and retail investment tools in Europe. As Scalable grows, it increasingly functions not just as a fintech, but as a distribution platform for global asset managers looking to tap into millennial and Gen Z European savings.

Scalable Capital’s Business Model and Market Position

Founded in Munich in 2014, Scalable Capital originally launched as a robo-adviser, offering algorithm-based portfolio management to tech-savvy investors. Over the past five years, it has aggressively expanded its product offering to become a comprehensive digital wealth platform.

Scalable’s current model includes commission-free trading for stocks and ETFs, savings plans, interest-bearing cash accounts, and digital portfolio management. Its “Prime Broker” subscription pricing model is core to its revenue strategy, giving users unlimited trades for a flat monthly fee. Additional income is derived from asset management fees, securities lending, and ETF distribution partnerships.

While exact user numbers and assets under management (AUM) are not disclosed in detail, estimates suggest it serves hundreds of thousands of clients and manages several billion euros in assets. Germany remains its primary market, but Scalable has expanded to Austria, France, Italy, and Spain, with further European growth planned.

European Fintech Valuation Landscape: Trends and Reset

Scalable Capital’s €1.5 billion valuation stands out at a time when many fintech firms have seen their valuations slashed. Following a market-wide correction that began in late 2021, capital has become more conservative, with a focus on profitability, user retention, and cost discipline.

Major players such as Klarna, Checkout.com, and N26 have experienced significant valuation resets. Consumer-focused platforms, in particular, have struggled to justify pandemic-era valuations as user growth slowed and cost of capital rose.

Scalable’s ability to raise capital at a high valuation suggests it has avoided the fate of many of its peers. It benefits from diversified revenue, a scalable infrastructure, and sustained customer engagement. Unlike pure trading platforms, its hybrid offering of robo-advisory, ETFs, and savings plans helps insulate it from the volatility of transactional trading volume. This makes it more attractive to long-term investors seeking durable revenue models.

Deployment of Capital: Growth Priorities and Platform Expansion

Scalable Capital has made it clear that this funding will go toward product development, regional expansion, and platform enhancement. In particular, the company has hinted at:

• Geographic growth: Entering additional European markets while deepening localised offerings in existing countries.

• Product expansion: Adding new instruments such as pensions, tax-efficient wrappers, or thematic portfolios. Crypto assets and structured products may also be areas of future focus.

• Platform investment: Strengthening mobile functionality, user experience, and AI-driven insights for portfolio management.

• Customer acquisition: Scaling marketing spend and partnership development to accelerate user growth, especially outside of Germany.

There is also speculation that Scalable may pursue selective acquisitions—either smaller fintechs with niche capabilities or legacy platforms seeking modernisation through partnership.

Competitive Landscape and Risks

Scalable Capital operates in an increasingly competitive segment. European rivals such as Trade Republic, DEGIRO, and BUX are also targeting the retail investor segment with commission-free models and mobile-first experiences. While competition has helped drive innovation, it has also triggered price compression and margin pressure.

Regulatory oversight is tightening as well. Across the EU, financial authorities are scrutinising business models that rely on payment-for-order-flow or aggressive marketing to retail investors. Scalable will need to remain ahead of regulatory trends, particularly as it expands across jurisdictions with different supervisory frameworks.

Market volatility poses another risk. While Scalable’s diversified product set offers some insulation, a sharp downturn in equities or a collapse in investor sentiment could reduce trading volume, lower AUM, and dampen customer acquisition. The platform’s reliance on subscriptions may help maintain some revenue predictability, but scale remains crucial to justify ongoing platform costs.

Conclusion

Scalable Capital’s latest raise and €1.5 billion valuation provide a telling snapshot of where European fintech stands in 2025. It suggests that while the easy money days are over, investors are still willing to back firms that combine strong fundamentals with scalable business models.

This funding is not simply a financial event—it is a validation of a particular vision for the future of wealth management in Europe: one that blends low-cost access, digital experience, and strategic alignment with institutional capital. If Scalable delivers on its expansion plans, it may not just become the "European Charles Schwab" in name, but in reach and influence as well.

But as competition heats up and regulatory scrutiny sharpens, the path forward will require more than capital. It will demand discipline, adaptability, and an ability to serve an increasingly sophisticated retail investor base across a fragmented continent.

Author: Brett Hurll