DriveWealth raises $450M at $2.85B valuation as its business scales
US-based digital trading technology company DriveWealth, LLC has raised $450 million in a Series D funding round that values the firm $2.85 billion. The fresh capital injection was led by New York-based private equity Insight Partners and venture capital investor Accel.
The new investment also saw a ‘significant participation’ from Greyhound Capital, Softbank Vision Fund, and Series C lead Point72 Ventures, DriveWealth said on Friday.
A follow-on investment from Fidelity International, plus several new backers including Base 10, FTX, and FlightDeck, also bankrolled the company’s third capital infusion.
Drivewealth is perhaps best known for providing API-based brokerage technology that offers non-US platforms real-time access to the US equities market through fractional share trading. The company’s technology underpins major fintechs like Revolut, MoneyLion and Unifimoney, among others.
The company intends to utilize the new funds to make new hires across several functions, strengthen its current technology stack, make strategic acquisitions, and grow the organization “on every continent” to scale its business.
DriveWealth will also use the Series D investment to launch a self-clearing hub and accelerate partnerships with digital wallets and brokerage apps.
The broker dealer has added new members to its board of directors: Deven Parekh from Insight Partners and Matthew Weigand from Accel.
Commenting on the news, Bob Cortright, founder and CEO of DriveWealth, said: “We are in the early innings of a worldwide retail investing revolution. Our goal is for DriveWealth to be the partner of choice to deliver the embedded investing experience of the future. This new capital and investor engagement will accelerate our global expansion plans in order to become the world-class, exchange-like technology company that powers tomorrow’s investing products.”
“The proliferation of digital wallets and democratization of investing has led to DriveWealth’s incredible growth and user adaptation to date, and the company’s institutional-grade brokerage execution delivers a seamless process to access equities globally. We look forward to partnering with the company as they continue to expand to meet the needs of today, and innovate for the demands of tomorrow’s fintech ecosystem,” added Deven Parekh from Insight Partners.
DriveWealth partners with many financial institutions, brokers, app developers, and technology companies to provide users with the ability to open a US-based brokerage account. The company’s offering covers six continents, offering its APIs that partners can use to provide new investment capabilities to their clients.
This collaboration with other platforms enables foreign investors to build portfolios of US stocks, ETFs, and ADRs with low costs starting from $0.99 per trade. The fractional trading feature also eliminates the barriers that many investors face when trying to invest in a diversified portfolio of high-value securities.
In addition, the partnerships leverage DriveWealth’s clearing capabilities to enable retail investors to transfer funds at lower costs, and manage their investments under a completely digital platform.