BUX, the Dutch trading and investment app, has raised an additional $12.5 million in new funding. The round was led by venture capital firms Velocity Capital and Holtzbrinck Ventures, and also included debt financing from Kreos Capital, bringing the total amount in funding raised so far to $35 million.
The investment has gone to support the company’s acquisition of online broker ayondo markets Limited (AML), BUX’s back-end provider for their current trading app.
The funding 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.
“This transaction gives BUX control over the full value chain including a full brokerage license, back-end technology and operations,” said founder and CEO Nick Bortot. “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.”
“The future of investing is changing and BUX is uniquely positioned to shape the neo-brokerage space in Europe,” adds 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.”
BUX claims that its mobile investing app STOCKS currently has over 100,000 users on the waitlist.