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A Milestone for a European Fintech Leader
Trade Republic, a Berlin-based digital investment firm, has reached a reported valuation of €12.5 billion following a large secondary share sale completed last week. The transaction, backed by a group of prominent global investors, marks a significant moment for one of Europe’s largest retail investing platforms and underscores continued confidence in the region’s fintech sector.
The deal involved approximately €1.2 billion worth of shares sold by early investors to a mix of new and existing backers. Among those participating were Founders Fund, Sequoia, Accel, TCV, Thrive Capital, Wellington Management, Fidelity, and Khosla Ventures. The transaction did not include new capital raised for the company. Instead, it provided liquidity for existing shareholders while resetting Trade Republic’s valuation at more than double its last reported level.
The development was first reported by the Financial Times and later confirmed by other media outlets familiar with the transaction.
Liquidity Without Dilution
Secondary share sales have become more common among late-stage private companies, particularly in markets where initial public offerings remain uncertain. In Trade Republic’s case, the transaction allowed early investors and employees to realize gains without altering the company’s capital structure.
The new valuation stands in contrast to the €5 billion figure assigned during the company’s 2022 funding round. That earlier valuation followed a period of rapid growth across global technology markets, before rising interest rates and regulatory pressure slowed investment activity in many fintech segments.
By securing liquidity through a secondary transaction rather than a new funding round, Trade Republic avoided dilution while signaling stability to long-term backers. The participation of established global funds suggests continued belief in the firm’s business model and growth prospects.
From Munich Startup to Berlin-Based Bank
Trade Republic was founded in 2015 in Munich under the name Neon Trading by Christian Hecker, Thomas Pischke, and Marco Cancellieri. The company emerged from a bank accelerator program, reflecting an early focus on operating within regulated financial frameworks.
Hecker, who had previously worked in investment banking, assumed the role of chief executive. Pischke and Cancellieri were involved in the platform’s early technical and operational development. After initially bootstrapping the business, the founders secured a €600,000 investment in 2017, providing the first external funding.
The company later relocated its headquarters to Berlin, a city that has become a central hub for European fintech companies. In 2019, Trade Republic obtained a full German banking license, a move that expanded its ability to offer savings products alongside trading services.
Funding History and Growth Path
Since its founding, Trade Republic has raised a reported $1.3 billion in total funding. A key milestone came in 2021 with a $900 million Series C round led by Sequoia, valuing the company at approximately $5.3 billion at the time.
That funding supported expansion across Europe and the development of new products aimed at long-term investing and savings, rather than short-term trading alone. While market conditions shifted in subsequent years, Trade Republic continued to add users and broaden its service offering.
The company reported its first annual profit in 2024, a milestone that set it apart from many peers still focused on growth over earnings. That result likely contributed to investor interest in the recent secondary transaction.
A Mobile-First Investing Platform
Trade Republic operates a mobile-first platform designed to make investing accessible at low cost. The service is often compared to Robinhood for its commission-free trading approach, though it operates under Europe’s regulatory framework.
Users can invest in a range of assets, including stocks, exchange-traded funds, bonds, derivatives, and cryptocurrencies. The platform supports fractional shares, allowing users to invest smaller amounts rather than purchasing full units of high-priced securities.
In addition to investing, Trade Republic offers savings accounts with interest paid monthly and a Visa debit card that provides cashback, which is automatically invested according to user-selected plans. These features aim to integrate saving, spending, and investing into a single application.
Revenue Model and Safeguards
Trade Republic generates revenue through several channels. One is payment for order flow, where the platform earns fees by routing trades to partner venues. It also applies modest transaction charges on certain deposits and earns interest on customer cash balances held within the platform.
Customer deposits are protected up to €100,000 through partnerships with established financial institutions, including Deutsche Bank and J.P. Morgan. This protection aligns with European deposit guarantee standards and has been a key factor in building user trust.
The company’s banking license allows it to hold customer funds directly, rather than relying solely on third-party custodians. This structure differentiates it from some competitors operating under lighter regulatory arrangements.
Expanding Across Europe
Trade Republic has expanded steadily across the European Union. The platform now operates in 17 countries and reports more than 10 million users. Assets under management have surpassed €100 billion, reflecting both user growth and increased investment activity.
The company’s user base reportedly doubled to around 8 million by early 2025, with a significant portion consisting of first-time investors. About one-third of users are based outside Germany, indicating broad regional appeal.
In 2025, Trade Republic opened branches in France, Spain, and Italy. These local entities allow the company to provide country-specific services, including automated tax reporting, which remains a key barrier for cross-border investing within Europe.
Competition in a Crowded Market
Trade Republic operates in a competitive environment that includes established online brokers and newer digital platforms. Competitors include eToro, known for its social trading features; DEGIRO, which focuses on low-fee brokerage services; Interactive Brokers, which offers broad market access to experienced traders; and Robinhood, which maintains a limited presence in the European Union.
Each competitor targets a slightly different segment of the retail investing market. Trade Republic’s focus has centered on simplicity, pricing transparency, and integration of savings and investing features.
Regulatory changes across the European Union, including restrictions on certain fee structures, have added complexity for all market participants. Trade Republic’s regulated approach and banking license may offer advantages as oversight continues to tighten.
Investor Confidence in European Fintech
The secondary share sale comes at a time when European fintech companies face mixed signals from investors. While funding volumes remain below peak levels seen earlier in the decade, established firms with clear paths to profitability have continued to attract interest.
Trade Republic’s reported valuation suggests confidence in its long-term prospects, particularly as retail investing becomes more common among younger Europeans. The company has positioned itself as a long-term savings and investing platform rather than a trading app built around frequent transactions.
Industry observers note that secondary transactions often reflect internal demand from investors seeking exposure to mature private companies, rather than speculation on short-term growth.
Strategic Options Ahead
With a higher valuation and a broader investor base, Trade Republic has more flexibility in considering future strategic options. These could include partnerships with traditional banks, acquisitions of smaller platforms, or further geographic expansion.
While there has been no public indication of an initial public offering timeline, the transaction places the company among Europe’s most valuable private fintech firms. Market conditions and regulatory developments are likely to influence any decision regarding a public listing.
Chief executive Christian Hecker has previously pointed to structural changes in European savings and investment behavior, including pension reforms in Germany, as factors driving interest in private equity ownership and long-term investing platforms.
A Broader Context for Retail Investing
Trade Republic’s growth reflects broader changes in how Europeans engage with financial markets. Digital platforms have lowered barriers to entry, while regulatory frameworks aim to balance access with consumer protection.
The company’s focus on first-time investors highlights a shift away from traditional bank-based investing toward app-based solutions. At the same time, increased scrutiny of fee structures and revenue models continues to influence how fintech firms operate.
As the sector matures, firms that combine scale, regulatory compliance, and profitability may gain an edge over those still reliant on aggressive expansion strategies.
Looking Ahead
The reported €12.5 billion valuation places Trade Republic among the most prominent fintech companies in Europe. The secondary share sale signals both maturity and confidence, while avoiding the risks associated with raising new capital in uncertain markets.
Whether the company pursues further expansion, strategic partnerships, or a public listing, its trajectory offers insight into the evolution of European retail investing. For now, Trade Republic stands as a case study in how a regulated, mobile-first platform can grow from a small startup into a major financial institution within a decade.
As reported by the Financial Times and other outlets, the transaction underscores renewed investor interest in established European fintech firms that combine scale with sustainable business models.
