US trading FinTech DriveWealth completes $56.7m Series C

By Sunniva Kolostyak

DriveWealth, a global digital trading technology provider, has landed $56.7 million in its Series C funding round to develop its technology stack and scale up its business.

Point72 Ventures led the investment round, followed by Raptor Group, SBI Holdings and Route 66 Ventures – all previous investors. The US FinTech also secured funding and new investors Mouro Capital and Fidelity International Strategic Ventures.

DriveWealth offers an API-based brokerage infrastructure designed to modernise financial services and allow partners to deliver embedded investment experiences on their own mobile applications. This includes real-time dollar-based investing capabilities.

Online brokers, digital advisors and mobile online financial services companies also get seamless access to the US securities market, and the company is already working with other FinTechs, including Hatch, Revolut, Stake and Moenylion.

DriveWealth plans on using the $56.7 million to strengthen its current technology stack, make strategic acquisitions and grow the organisation to scale its business.

Bob Cortright, CEO and Founder of DriveWealth commented: “DriveWealth saw its partners open more accounts in 2Q than E*Trade, Schwab and TD Ameritrade combined, and 3Q saw a 33% increase over 2Q.

“This type of activity speaks to the power of making it simple for consumers to start investing immediately. The new funding from our great investors will only help us improve our technology capabilities to democratize investing.”

Also commenting, Tripp Shriner, Partner at Point72 Ventures, said: “As incumbent and new financial services providers look to offer new products and better serve their customers, companies like DriveWealth will play a critical role in supplying the infrastructure that these firms need to innovate.”

Matt Ford, Partner at Mouro Capital said: “Brokerage is a complex, heavily regulated industry that has historically been hindered by legacy technology and product constraints. But a new generation of investors are expecting something different and better, and we believe DriveWealth will be the infrastructure that helps enable this globally. They have a unique, brilliant combination of deep brokerage experience and a high-quality developer-first platform which is powering some of the fastest-growing investment propositions around the world.”

DriveWealth closed its Series B funding round, which totalled $21 million, in April of 2018. The company has received a total of $100.8 million in funding to date. In the past 12 months, DriveWealth has expanded into the HSA space and partnered with Access Softek to bring its offering to community banks and credit unions.