Vivid Money just completed a €100 million Series C only ten months after its last fundraising of 60 million euros. In less than two years after its launch, it is valued today at more than 775 million euros. In April 2021, it claimed only 360 million. Now deployed in five European countries, it is counting the weeks before announcing the million customers.
This exponential progression may be known in the fintech sector, but it is not for a neobank. And yet that is what Vivid Money is. The German establishment has simply succeeded in combining the best of the two most fashionable products in the banking world for two years: a free bank card accompanied by a set of investment services in the stock market and in cryptocurrencies. All while learning from the mistakes of older competitors.
To make the comparison on its local market in Germany, Vivid Money has combined the advantages of the neobank N26 with those of Trade Republic, the application for investing your money. Investment is one of the big pillars of the young start-up and after a frenetic period Since its launch, the price reversal in the Stock and Cryptocurrency markets will certainly slow down the progress of Vivid Money.
Vivid Money, flawless until when?
To catch up with other existing players, fintech has joined forces to SolarisBank, a German start-up that offers its banking services to around fifty companies. Vivid Money quickly became its biggest customer. After a funding round of 190 million euros, SolarisBank even moved to France in July 2021 to compete directly with local online banks.
At the time, the founder of Vivid Money explained that he “released a new product every two weeks”, to explain the appeal and dynamism of his startup. Today, the result is that more than 50 digital currencies can be exchanged, and that a total of 3000 stocks and ETFsalso including SPACs are available on stock exchanges.
Stocks and ETFs were just the beginning. We’re super excited to announce that Vivid crypto investing is now live! Invest in the biggest cryptocurrencies, and become part of a global movement of modern investors. pic.twitter.com/PFQrALT1nd
— Vivid Money (@vivid_en) April 26, 2021
On the bank account side, a new paid offer has also arrived to allow premium services to be offered to customers and to start thinking about the profitability of the box. Although it was not a priority last year, a credit card could very soon complement the existing offer consisting of a Visa debit card. Next, insurance offers are planned.
On the deployment side, the objective by 2023 is to establish fintech in the entire Europe. Currently, Vivid Money has customers in Germany, France, Spain and Italy. To be able to expand, it will therefore be necessary to go through a deployment in Western Europe. What the founder of Vivid Money is looking forward to. According to him, it would be a “huge market for investment and savings”.
To get its start, fintech can count on the presence of the huge Japanese conglomerate Softbank via its Vision Fund 2 (a fund dedicated to technology launched in July 2019). Opposite, Trade Republic is racing with Sequoia. In terms of venture capital investment, the neobank environment has not lost its attractiveness.