Today, BUX announced a $12.5M funding round led by venture capital firms Velocity Capital and Holtzbrinck Ventures, bringing the total amount in funding raised so far to $35M. The funding round also included debt financing from Kreos Capital.
The funding has gone to support the acquisition of online broker ayondo markets Limited (AML), BUX’s back-end provider for their current trading app. This funding round will also support both the launch and first stage of BUX’s soon-to-launch app, STOCKS, which will allow Europeans to invest commission-free starting July 2019.
BUX acquires AML
The acquisition of AML marks the first acquisition by BUX since its founding in 2014. Todate, the partnership with AML has allowed BUX to fully focus on creating an app that removes the complexity from the ﬁnancial markets and simpliﬁes the trading experience. It has allowed BUX to reach a base of over 2 million users in just over four years across 9 European countries.
“This transaction gives BUX control over the full value chain including a full brokerage license, back-end technology and operations.” said Nick Bortot, CEO and Founder of BUX. “It will take away any external dependencies and allow us to serve our customers even better and make it easier to introduce new features more quickly. We will additionally add 50% to our future revenues, as we will keep servicing other clients of AML.”
Funding boosts launch of STOCKS - the future of neo brokerage
The funding round of $12.5M will also be supporting the launch of mobile investing app, STOCKS, which currently has over 100K users on the waitlist. To-date, there have been limited opportunities for Europeans to invest confidently in the brands and companies they care about. The launch of STOCKS seeks to lower the barriers of entry into the world of investing and empower Europeans to take control of their financial futures in an easy and affordable way.
"The future of investing is changing and BUX is uniquely positioned to shape the neobrokerage space in Europe," said Willem Willemstein, Investment Partner of Velocity Capital. “The fintechs that will succeed in this environment will be those who are able to specialise, localise and adapt to the varied cultural needs of the European landscape. BUX has a distinctive combination of experience scaling across Europe, combined with a vibrant lifestyle brand that will be unique to anything currently in the market."
STOCKS will be offering a powerful combination of zero-commission investing, a clean user experience, smooth client on-boarding, a vibrant community as well as hyperlocalized content.
The AML acquisition and continued funding rounds will help BUX to continue the mission to let Europeans explore new financial territories, connect with like-minded people and learn from experienced investors and traders.