Raisin Raises $64.7 Million to Expand Investment and Savings Platform

Raisin has gained 60 million euros (about $64.7 million) in a Series E round.

The Berlin-based FinTech company will use the new funding to add new features to its investment and savings platform, further simplify the processes on the platform and accelerate its growth in the United States, Raisin said in a Thursday (March 23) press release.

“The investment marks another important step in our objective to provide savers throughout the European Union, the United Kingdom and the United States with straightforward and fair products,” Raisin Chief Financial Officer and Co-founder Frank Freund said in the release. “As a FinTech pioneer, we provide the infrastructure to democratize the global savings and investments market — benefiting consumers and financial institutions alike.”

PYMNTS research has found that 25% of consumers would switch from their banks for savings accounts.

That is especially true among younger individuals who need to improve their finances, and this provides fertile ground for companies that can help them beef up their savings accounts, according to “Personalization Beyond Traditional Banking to Build Financial Wealth,” a PYMNTS and NCR collaboration.

The race to boost savings rates on accounts — and to lure deposits — is and has been global in scope, the report said.

In the case of Raisin, the FinTech company operates B2C marketplaces under the brands Raisin, WeltSparen and ZINSPILOT in Europe and SaveBetter in the U.S., according to the press release.

The firm entered the U.S. market in 2020 and added $1 billion in assets under management (AuM) in that market alone in 2022. Globally, the firm has a total AuM of 38 billion euros (about $41 million), the release said.

The firm aims to deliver competitive savings rates to consumers and attractive retail funding sources to banks, per the release.

M&G Catalyst was among the new investors participating in Raisin’s most recent funding round, according to the release.

“We are excited to be supporting Raisin’s impressive growth story as they seek to improve outcomes for savers of all ages across Europe, the U.K. and the U.S. and reduce barriers and inefficiencies in the financial system,” M&G Catalyst Head of Global Investments Niranjan Sirdeshpande said in the release.