PayPal-backed German fintech startup Raisin buys a bank in Frankfurt

PayPal-backed German fintech startup Raisin buys a bank in Frankfurt

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In the latest development, VC-backed financial technology company Raisin is taking the road less traveled by buying MHB Bank of Frankfurt. Having said that, the acquisition of the shares in MHB by Raisin is still subject to final approval by the German Federal Financial Supervisory Authority (BaFin) and the European Central Bank (ECB).

In February, Raisin closed a €100 million financing round allocating the cash for strategic acquisitions and further international expansion. Notably, in 2017 Raisin took over the firm of PBF Solutions of Manchester, which today successfully runs Raisin’s UK branch.

How this acquisition will help Raisin?

This takeover is expected to help Raisin expand its area of operations as well as its value chain. At present, MHB Bank currently handles portions of Raisin’s process related to account management, customer identification and financial transactions, all the preserve of licensed financial institutions. Together, both companies will be able to develop better solutions for partners and consumers across Europe.

How will Raisin benefit its customers and partners?

Founded by Frank Freund, Michael Stephan and Tamaz Georgadze in 2012, Raisin provides its customers simple, direct access to a wide variety of savings and investment products from across Europe. At present, Raisin has more than 165,000 customers and over 250 products offered by nearly 70 European banks on the fintech’s seven platforms.

MHB!

Founded in 1973 and based in Frankfurt, MHB is one of the preeminent service-banking providers for fintechs in Germany with clients, including Exporo, CreditShelf and Bergfürst, in addition to Raisin.

Raised a total of $178M!

Raisin’s marketplace offers simple access at no charge to attract and guaranteed deposit products from all over Europe. Since launch in 2013, Raisin has brokered 11 billion EUR for over 165,000 customers in 31 European countries and more than 65 partner banks. Raisin has raised a total of $178M in funding over 5 rounds. Their latest funding was raised on Feb 5, 2019, from a Series D round.

Raisin CEO and co-founder Dr. Dr. Tamaz Georgadze explains:

As one of the leading fintechs in Europe, we believe in making sustainable changes to the financial system in order to make the needs of customers and partners paramount. Together with MHB, we can continue to develop — and seamlessly integrate — the services we offer customers, partner banks and distribution partners.

Stay tuned to Silicon Canals for more updates in the tech startup world.

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