The new funding round remains undisclosed, according to TechCrunch, and it will be used by Raisin to accelerate growth in its core European geographies. So far, the Germany-based startup had raised over EUR 60 million from various backers, including Thrive Capital, Ribbit Capital, and Index Ventures.
Raisin was founded in 2013 and it aims to crack open the savings deposit market in Europe by taking advantage of EU-wide banking regulation. The problem the startup solves is that saving deposit rates differ not only from one local bank offer to another but even more strikingly across Europe as a whole.
The Raisin marketplace enables users shop around and compare different rates European-wide and offers consumers a single interface that includes account opening and anti-money laundering checks. The banks that integrate with the Raisin marketplace, especially smaller and midsize banks, can get exposure to customers across Europe that might otherwise never be reached.
Currently, 40 banks offer savings accounts through Raisin, ranging from overnight flexible savings to long-term deposits. Raisin has already partnered with N26 to be listed in the challenger bank’s own app, and white labels its offering for others. Therefore we could expect, as part of the deal, PayPal to push Raisin to its users, as another channel for the startup to reach savers.
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