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Bux, a European Robinhood, raises $80M to expand its neo-broker platform

A new wave of apps have democratized the notion of investing, imparting the notion of trading broths and currencies to a wider pool of users who can use these platforms to conclude incremental, or much greater, wagers in the aspirations of originating their coin at a time when interest rates are low. In the latest development, Bux — a startup form Amsterdam that lets parties invest in shares and exchange-traded monies( ETFs) without pay boards( its pricing is based on flat EUR1 fees for certain business , no rewards for others) — has picked up some speculation of its own, a $80 million round that it.

Alongside this, the company is announcing a new CEO. Founder Nick Bortot is stepping apart and Yorick Naeff, an early work of the company who had been the COO, is taking over. Bortot will remain a shareholder and involved with the company, which will be using to expand its geographical footprint and expand its tech platform and services to users, said Naeff in an interview.

” Since we are beginning, Bux has been trying to make investments inexpensive and instinctive, and that will still be the case ,” he said. The average age of a Bux customer is 30, so while affordable and intuitive are definitely priorities to captivate younger consumers, it also means that if Bux can give their love and reveal positive returns, they have the potential to keep them for a long time to come.

The funding is coming from an interesting group of investors. Collectively led by Prosus Ventures and Tencent( in which Prosus, the tech fraction of Naspers, is a major investor ), it also included ABN Amro Ventures, Citius, Optiver, and Endeit Capital — all new investors — as well as previous backers HV Capital and Velocity Capital Fintech Ventures.

Naeff said in an interview that Bux isn’t disclosing its valuation with this round. But for some context, he confirmed that the startup has around 500,000 customers across the Netherlands, Germany, Austria, France and Belgium, use not just its main Bux Zero app, but too Bux Crypto and Bux X( a contracts for difference( CFDs) app ).

Crypto remains a niche but extremely active part of the wider investment market and Naeff described Bux Crypo — constituted out of Bux acquiring Blockport last year — as “very profitable.” The company had only raised about $ 35 million before this round, and it’s been around since 2014, so while he wouldn’t comment on wider profitability, you can draw some conclusions from that.

For some further valuation context, another big-hearted player in trading in Europe, eToro, in March announced it was going public by way of a SPAC valuing it at $10 billion.( Note: eToro is significantly bigger, computing 5 million customers last year alone .)

Others in the wider competitive landscape include Robinhood out of the US, which had strategy but appears to have stopped in its entry into Europe; Trade Republic out of Germany, which raised $ 67 million a year ago from the likes of Accel and Founders Fund; and Revolut, which has been running a trading app for some time.

The opportunity that Bux is targeting is a very simple one: engineering, and specifically innovations in banking and apps, have opened the door to compiling it hugely easier for the average consumer to engage in a brand-new define of financial services.

At the same time, some of the more traditional ways of ” growing ” one’s capital, by way of buying and selling property or opening savings accounts, are not as strong these days as they were in the past, with the casing busines being too expensive to enter for younger people, and interest rates very low, resulting those consumers to considering other options open to them. Social media is also playing a major role now, reform and opening up conversations around expending that have been traditionally pass between professionals in the industry.

“We’re looking for manufactures that solve large-scale societal needs and fintech continues to be one of them ,” said Sandeep Bakshi, who heads up assets for Prosus in Europe, in an interview.” Interest charges being exactly what he, there are no opportunities for individuals to save and that represents a big opportunity, and we’re happy to partner and become members of the excursion .”

Although there is a wave of so-called neo-brokers in the market today, Bux’s unique selling level, Naeff said, is the company’s tech stack.

In comparison to others equipping trading apps, he said Bux is the first and just one of them to have constructed a full-stack system of its own.

” It’s not on top of existing broker, which acquires it a adroit and modular ,” he said.” This is especially critical because fintech is a game of flake, but every sell is completely different when you consider charge, payment systems and the ID documents that one needs in order to fill KYC requirements .”

And that is before you believe that doing business in Europe conveys doing business in a number of different languages.

” Our plan is available to flake across Europe ,” he said.” The information that we are live in five countries, and the only neo-broker do that, shows that this modular system is working .”

Indeed, the scale opportunity is one of the reasons why China’s tech giant Tencent, proprietor of WeChat and a massive gaming dominion, has come on board.

“We are elicited about patronage BUX as they are the leading neo-broker in Europe and have been able to build a platform that is sustainable and scalable. BUX is the only neo-broker in Europe that volunteers zero commission endowing without being dependent on kickbacks or payments for say flowing. This ensures that its interests are amply aligned with its patrons. We will support BUX in its jaunt of following consistent proliferation for the years to come”, said Alex Leung, Assistant GM at Tencent, Strategic Development, in a statement.

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