Raisin raises $64.7 million for savings platform

Raisin has raised 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 processes on the platform and accelerate its growth in the US, Raisin said in a press release on Thursday (March 23).

“The investment marks another important step in our goal to provide savers across the EU, UK and US with simple 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 investment market – to the benefit of consumers and financial institutions alike.”

PYMNTS research has found that 25% of consumers would switch from their banks to get a savings account.

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

The race to increase savings rates on accounts – and to attract deposits – is and has been global in scope, the report states.

As for Raisin, the FinTech company operates B2C marketplaces under the brands Raisin, WeltSparen and ZINSPILOT in Europe and SaveBetter in the US, according to the press release.

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

The company aims to deliver competitive savings rates to consumers and attractive funding sources to banks, according to the release.

M&G Catalyst was among the new investors that participated in Raisin’s latest funding round, according to the release.

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