Infrastructure Fintech NaroIQ has obtained authorisation from the German Federal Financial Supervisory Authority (BaFin) for its subsidiary NaroAM to operate as an investment firm.
The start-up’s modular technology allows traditional fund providers to enter the ETF market via its digital ETF fund infrastructure. The solution integrates seamlessly into fund providers’ existing value chain and systems. NaroIQ’s platform significantly reduces costs and operational complexity, while lowering market entry barriers for new providers. With its newly acquired licences, NaroIQ now offers fund providers the full suite of technological to regulatory services required to launch an ETF, such as investment brokerage, index calculation and portfolio management.
Licence marks the launch of digital ETF fund infrastructure
With the latest authorisation, NaroIQ and its subsidiaries now hold five BaFin licences and registrations. The company will now bring its digital infrastructure for the launch and management of ETFs into operation. The platform comprises two core solutions: the creation of new ETFs and ETF share classes for traditional capital management companies (ManCos) and fund providers, and the conversion of existing retail funds into ETFs.
NaroIQ has already secured its first ManCo partner, Hauck & Aufhäuser Fund Services (HAFS Group), which is expanding its offering to include the launch and administration of both active and passive ETFs. This partnership highlights the increasing relevance of active ETF strategies, as well as their strong growth: According to e-fundresearch, active ETFs recorded record inflows of USD 267.02 billion in the first half of 2025, while traditional funds saw lower net inflows according to EFAMA. Traditional fund providers are already facing significant challenges: two-thirds of assets managed in European ETFs are administered by the three largest providers, leaving smaller and mid-sized fund providers with only marginal market shares or no participation in the ETF market at all.
Chris Puellen, NaroIQ CEO and Co-Founder © NaroIQ
“Traditional fund providers and capital ManCos are being pushed out of the market by the rise of ETFs and the global infrastructures they rely on, facing continued outflows of assets,” explains Chris Püllen, CEO and Co-Founder of NaroIQ. “With our digital infrastructure, we counter global economies of scale with technology, enabling traditional providers to become more competitive. We make it possible to launch ETFs within their existing structures, finally allowing equal participation in the fund industry’s growth market.”
Hendrik Mechlinski, Managing Director NaroAM © Fariz Hakim
“The recipe for true innovation in the financial sector lies at the intersection of technology and a clear regulatory framework. The latter is essential to earn the trust our clients and partners place in our infrastructure,” says Hendrik Mechlinski, Managing Director of BaFin-regulated subsidiary NaroAM. “With these BaFin licences, we are taking the decisive step from two years of technology development to operational business.”
Alongside Hendrik Mechlinski, Christian Meyer-Vahrenhorst, both of whom are well-known figures in the German fund industry, is also part of the BaFin-regulated subsidiary’s management team.
The granting of the licences follows NaroIQ’s USD 6.5 million (EUR 5.85 million) seed funding round earlier this year, led by European VCs Magnetic and Redstone. Existing venture investors, including US-based General Catalyst, also increased their commitments in the round.