Digital trading technology platform DriveWealth has closed its Series C round $56.7m, which will help it to make strategic acquisitions.
Point72 Ventures acted as the lead investor, with commitments also coming from Raptor Group, SBI Holdings and Route 66 Ventures. Mouro Capital and Fidelity International Strategic Ventures also joined the round, making their first investments into DriveWealth.
The capital will be used to make strategic acquisitions, enhance its technology and grow the organisation.
DriveWealth’s API-based brokerage infrastructure allows clients to embed investment experiences directly on their own applications. Its services are used by online brokers, digital advisors and online financial services.
Its technology supports trading, retirement planning, robo-advisory, rewards and more.
Over the past 12 months, DriveWealth has expanded into the HAS space and partnered with Access Softek to bring its offering to community banks and credit unions.
DriveWealth founder and CEO said Bob Cortright said, “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.”
In tandem with the deal, Route 66 partner Pat Wilson, Raptor Group managing director Peter Monaco, SBI CEO Yukiko Roberts and Cuttone & Company CEO Donato Cuttone have joined the company’s board of directors.
Mouro Capital partner Matt Ford said, “We’re really proud to be backing Bob and the DriveWealth team on the next stage of their growth journey. 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.”
The FinTech has raised a total of $100.8m in funding and closed its Series B on $21m in 2018.
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