FinLab portfolio company Deposit Solutions closes USD 100 million financing round, achieving a company value of USD 500 million
Transaction spearheaded by growth investor Vitruvian Partners together with Kinnevik as co-investor
Partial exit by FinLab amounting to USD 11.5 million results in a double-figure earnings contribution for 2018 for FinLab
FinLab continues to hold 7,7% of Deposit Solutions
Frankfurt am Main, 16. August 2018 - Today, Hamburg-based Fintech company Deposit Solutions GmbH, a portfolio company of Frankfurt-based, stock market listed FinLab AG (ISIN: DE0001218063; Ticker: A7A.GR), announced the successful conclusion of a financing round amounting to USD 100 million. With this new round of financing, the company value reaches USD 500 million, making Deposit Solutions one of the most valuable Fintech companies in Europe.
Since FinLab's first investment in September 2015, the valuation of Deposit Solutions has therefore increased almost twenty times over.
The transaction was headed by the private equity firm Vitruvian Partners, with Kinnevik as co-investor. In addition to FinLab, Peter Thiel, co-founder of PayPal and an initial investor in Facebook, Christian Angermayer's Apeiron Investment Group, e.ventures, Greycroft and Stefan Wiskemann hold an interest in Deposit Solutions.
As part of the transaction, FinLab sold a part of its stake in Deposit Solutions amounting to USD 11.5 million, thereby realizing an earnings contribution in a double-figure million USD range. This realization and the statement of profits will be reflected in the annual financial statement for 2018.
Following the conclusion of the financing round and the partial exit, FinLab holds a 7.7% stake in Deposit Solutions and therefore remains a significant shareholder, which is conveyed in the form of a position on the advisory committee of Deposit Solutions. The NAV of FinLab hence is significantly increasing with this transaction.
"We are more than proud that Deposit Solutions, together with its founder, Dr. Tim Sievers, has received yet another vote of confidence from such well-recognized new investors as Vitruvian and Kinnevik," said Juan Rodriguez, a member of the management board at FinLab. "The company's development is impressive: it has successfully scaled its B2B core business, amongst others with renowned partners such as Deutsche Bank or Fidelity's FFB. Additionally, its B2C channels under the brands "ZINSPILOT" and "SAVEDO" continue to grow exponentially and rank among the most successful B2C fintech offerings globally, having added over 155,000 customers and transmitted deposits of more than EUR 9 billion. All of these indicate impressive performance also for the years to come."
FinLab board member Stefan Schuetze adds: "The cash exit of USD 11.5 million as well as the re-valuation of our remaining stake will drive FinLab's NAV-performance and EBIT as well as earnings per share in 2018 and most likely will make 2018 the most successful year in the history of FinLab. The rest of the FinLab portfolio is also performing very well, and we expect further positive news for the rest of the year."
About FinLab AG:
Stock market listed company FinLab AG (WKN 121806 / ISIN DE0001218063 / ticker symbol: A7A.GR) is one of the first and largest company builders and investors focused on the Financial Services Technologies ("FinTech") sector in Europe. FinLab focuses on developing German FinTech startups and providing venture capital for their financial needs, whereby in each case the aim is a long-term participation and ongoing support of the investment. FinLab also invests globally, as part of venture rounds, in FinTech companies, primarily in the USA and Asia.
Phone: +49 69 719 12 80 147
About Deposit Solutions GmbH:
Deposit Solutions is a globally recognized FinTech company and the Open Banking platform for deposits. Its proprietary Open Banking technology provides an infrastructure for the global USD 50 trillion deposit market that benefits banks and savers alike. Deposit Solutions is already connecting more than 70 banks from 16 countries and additionally operates proprietary B2C Points of Sales (ZINSPILOT and SAVEDO) that market select deposit offers of its partners directly to savers. Founded in 2011 by Tim Sievers, the company is headquartered in Hamburg, has additional offices in London, Zurich and Berlin and employs a team of 250. Deposit Solutions is backed by leading tech investors such as e.ventures, Vitruvian Partners, Greycroft, FinLab, Kinnevik, Peter Thiel, Top Tier Capital Partners, Apeiron Investment Group and Angel Investor Stefan Wiskemann.
+44 203 7551 647
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