Trade Republic, a German stock trading app, has officially announced a valuation of €12.5 billion ($14.7bn) after a large secondary share sale, marking a major step for the Berlin-based fintech as it becomes one of the most valuable startups in Europe. Existing investors, including Peter Thiel’s Founders Fund and Sequoia, increased their stakes in the round, pushing the company into decacorn territory, a milestone reserved for private companies valued at more than $10bn.
Secondary Sale More Than Doubles Valuation
The deal more than doubled Trade Republic’s 2022 valuation of around €5bn, despite a more cautious funding environment for fintech startups across Europe. Trade Republic confirmed that approximately €1.2bn worth of shares were sold by existing investors to other shareholders, meaning the transaction did not result in any new capital entering the business.
Strong Backing from Existing and New Investors
Alongside Founders Fund and Sequoia, existing investors Accel, TCV and Thrive Capital also participated in the secondary sale. The transaction additionally brought in several prominent new investors, including Wellington Management, Fidelity Investments and Khosla Ventures, all of whom joined Trade Republic’s cap table for the first time.
Building Europe’s Retail Investing Platform
Founded in 2015, Trade Republic has grown into one of Europe’s leading retail investment platforms by offering commission-free trading of stocks, exchange-traded funds (ETFs), cryptocurrencies and derivatives through a mobile-first app. The company positions itself as a low-cost alternative to traditional banks and brokers, targeting a new generation of retail investors across the continent.
Expanding Beyond Trading
Trade Republic now serves millions of customers across 17 European countries, with Germany remaining its largest market. In recent years, the company has expanded beyond pure trading by launching interest-bearing cash accounts and long-term savings products, particularly ETF-based investment plans designed to encourage regular investing.
Investor Confidence Amid Fintech Headwinds
The latest valuation reflects strong investor confidence in Trade Republic’s long-term growth potential, even as the fintech sector faces tighter capital markets, increased regulatory scrutiny and growing pressure to demonstrate sustainable business models. Unlike many fintech peers that rely heavily on venture funding to fuel growth, Trade Republic has increasingly focused on profitability and operational efficiency.
Pension Reform Fuels Retail Investing Shift
Christian Hecker, co-founder and CEO of Trade Republic, described the transaction as evidence of a deeper shift in Europe’s financial culture. “This deal highlights that the shift towards retail investing in Europe is only just beginning,” he said, pointing to government-led pension reforms in countries such as Germany that aim to promote broader stock ownership.
Germany’s Changing Investment Culture
Historically, Germany has lagged behind the US and UK in retail stock market participation, with households favouring savings accounts and insurance products. Ongoing debates around pension reform and private investment are now creating favourable conditions for platforms like Trade Republic, which aim to lower barriers to market access.
Liquidity Event, Not Capital Raise
The absence of new primary capital suggests Trade Republic remains well funded following earlier rounds, including its 2021 Series C, which raised around €900m and valued the company at roughly €4bn. The secondary sale primarily provides liquidity for early investors and employees while allowing long-term backers to increase their exposure.
A Growing European Fintech Champion
By reaching decacorn status, Trade Republic joins a small group of European fintech heavyweights such as Klarna and Revolut, reinforcing Berlin’s position as a major global fintech hub. With backing from some of the world’s most influential institutional investors, the company is well positioned to expand its product portfolio and geographic footprint in the years ahead.
