Fractional Trading Platform DriveWealth Raises $450 Million

Another FinTech mega round is in the books as DriveWealth has just announced that it’s raised $450 million. The Series D was co-led by Insight Partners and Accel with “significant participation” from Greyhound Capital, Softbank Vision Fund 2, and Point72 Ventures (which previously led the firm’s Series C). Returning investor Fidelity International and new investors Base 10, FTX, and FlightDeck also contributed to the round, which valued the company at $2.85 billion. To date, the FinTech has now raised a total of $550.8 million. With the latest injection of fundings, the firm says it plans to continue expanding its product as well as focus on acquiring talent.

DriveWealth is a fractional stock trading platform that allows consumers to invest as little as $1 in various U.S. stocks. Instead of operating its own app, the company offers an API, allowing fellow FinTechs to integrate its technology. Among those already employing DriveWealth fractional trading capabilities are Revolut, MoneyLion, Stake, and others.

Commenting on the company’s momentum and how this funding round will help propel it forward, DriveWealth founder and CEO Bob Cortright said, “We are in the early innings of a worldwide retail investing revolution. Our goal is for DriveWealth to be the partner of choice to deliver the embedded investing experience of the future. This new capital and investor engagement will accelerate our global expansion plans in order to become the world-class, exchange-like technology company that powers tomorrow’s investing products.”

Meanwhile, Accel’s Matt Weigand said of DriveWealth, “The increasing demand for financial services has left FinTech companies eager to expand their products and drive engagement. With DriveWealth’s unique combination of brokerage experts and technology, FinTech’s can get to market quickly and scale.”

This funding round arrives as the FinTech brokerage scene (and the larger discount brokerage market in general) have experienced major shake-ups. In recent years, a number of traditional brokerage firms have moved to a commission-free models a la their FinTech competitors. More recently, the exceptionally popular but controversial trading app Robinhood caused a splash by going public. Since then, the stock has seen some ups and downs but, as of this writing, remains above its IPO price.

Given DriveWealth’s behind-the-scenes status, the firm might not be a household name. However, it’s clear from the companies they’re working with that the startup could prove to be a big player — even as competition in the digital brokerage sector heats up. With $450 million now at its disposal, expect big things from DriveWealth going forward.

Author

Jonathan Dyer

I'm a small town guy living in Los Angeles looking to make solid financial decisions. I write for a number of finance websites, including HuffingtonPost and Business2Community. I founded DyerNews.com in 2015 to focus on personal finance and the emerging FinTech markets.

Other Articles by Jonathan Dyer

Crypto Checking Account Juno Closes $18 Million Series A

Despite the so-called "Crypto Winter" continuing, a FinTech that bills itself as a checking account for crypto natives has just secured a significant investment. This week, Juno announced that it had raised $18 million in funding. The Series A was led by ParaFi Capital’s Growth Fund with additional participation from Hashed, Jump Crypto, Uncorrelated Fund, Greycroft, Mithril, Antler Global, 6th Man Ventures and Abstract Ventures. Previously, the company closed a...

Hawaiian Airlines Introduces Enhanced Bag Benefit for Cardholders

When it comes to travel credit cards, there are several routes that consumers can take. For some, a generic catch-all card may make sense, while others may prefer to leverage their brand loyalty by adding a co-branded travel card to their wallet. With the latter, travelers can often enjoy perks specific to their preferred airlines or hotel, allowing them to save money and/or time. Case in point: Hawaiian Airlines and...

Debt Payoff App Tally Raises $80 Million

A well-known FinTech app that offers debt consolidation to consumers has just secured a major investment. Today, Tally announced that it had raised $80 million in its latest funding round. The Series D was led by Sway Ventures, while Menora Mivtachim along with previous investors Kleiner Perkins, Andreessen Horowitz, Shasta Ventures, Cowboy Ventures also participated. With the new funding, Tally plans to further expand its debt pay-down platform and continue...