DriveWealth raises $450M at $2.85B valuation as its business scales

abdelaziz Fathi

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.

 

 

Read this next

Institutional FX

Euronext’s FX volume takes yet another step back in July

Pan-European exchange, Euronext has reported a 7.6 percent drop in the average daily volume on its spot foreign exchange market. The ADV figure stood at $21.4 billion in July 2022, which is down from June’s $23.1 billion.

Executive Moves

IG Group strengthens institutional sales with appointment of Glen Hastings

IG Group, Europe’s largest online trading platform, has onboarded Glen Hastings to the role of its institutional sales manager. He joins the FCA-regulated broker with immediate effect, based out of its offices in London.

Digital Assets

Voyager customers can withdraw up to $100K in cash via ACH transfer

Following approval of the bankruptcy judge, cryptocurrency brokerage firm Voyager plans to return $270 million in customer cash. The amount represents a small portion of investors’ crypto holding that have been locked up since the company filed for bankruptcy in April.

Retail FX

Britain’s lifeboat system to conclude LCG compensation scheme

Britain’s Financial Services Compensation Scheme (FSCS) said today it’s preparing to close the compensation scheme of the collapsed mini-bond provider, London Capital & Finance.

Uncategorized

Robinhood parts ways with its first CPO Aparna Chennapragada

In what apparently part of the restructuring it announced last month, Robinhood is parting ways with its Chief Product Officer Aparna Chennapragada. However, she’ll remain employed in an advisory role to the CEO through January 2023.

Digital Assets

Crypto.com expands regulatory footprint with new licence in South Korea

Crypto.com has acquired payment service provider ‘PnLink Co., Ltd.’ and virtual asset service provider ‘OK-BIT Co., Ltd.’ The move effectively provides a regulatory stamp for the company’s digital assets and cryptocurrencies business in South Korea.

Metaverse Gaming NFT

Why NFT Technology Could be the Much Needed Solution to Crypto Inheritance 

The digital asset market may have started with Bitcoin’s humble beginning but its fortunes have changed over the past decade.

Industry News

Kohle Capital Markets expands CFDs lineup to 200+ stocks

Kohle Capital Markets (KCM), the leading international provider of online trading, has once again expanded its contracts-for-difference (CFDs) offering, this time with the addition of new products on its trading platform.

Industry News

Kohle Capital Markets continues CSR initiatives with donation of art piece to Lions Club International

Global brokerage firm Kohle Capital Markets (KCM) is taking its corporate social responsibility very seriously and continues to navigate the challenging period brought forth by the pandemic and Russia-Ukraine war.

<