Raisin FinTech Enters Pension Market With Fairr Acquisition

FinTech startup Raisin, a company that offers savings and investments in the pan-European market, has acquired German startup Fairr, according to a report.

Fairr is viewed as a disruptor in the German pension market, and Raisin reportedly wants to expand to enter that market, which is worth about €12 trillion in all of Europe. The exact details of the deal are not enclosed, but it’s rumored to be in the “double-digit Euro millions” area.

The deal was mostly done in cash, with some investors in Fairr getting a mix of cash and stock in Raisin. The acquired company’s investors include Investitionsbank Berlin (IBB), Pro7Sat.1 Accelerator, Söderberg & Partners and Transamerica Ventures.

The move is a way for Raisin to entrench itself deeper into the pension and savings market, which seems to be a natural extension from deposits and investments. Raisin aims to offer an all-in-one marketplace that only requires users to sign up once and has regulatory checks built into the system.

The founders of Fairr will take on new positions inside a newly formed investment and pension division at Raisin.

“The entire Fairr team will also join them in becoming part of the larger Raisin family,” the company said.

One of the main reasons for the acquisition is that Fairr has shown a high level of knowledge in the complex German pension market.

“Just as Raisin focuses on providing savings that are more customer-friendly and more transparent than comparable products on the market, Fairr has been dedicated to doing the same with its own solutions in retirement savings,” Raisin said. “Fairr’s low-cost, fully digital offer is based on an ETF investment approach. The company has received multiple awards and seen its products recommended by both Germany’s premier financial advice publication and top consumer finance guide.”