Two of Germany’s biggest fintech startups Deposit Solutions and Raisin have consented to unite in a deal to create a European group connecting banks with savers, the two companies said on Friday.
Under the name Raisin DS, the consolidated company will work with around 400 banks and have a deposit-volume of around 20 billion euros ($24 billion).
“The consolidation carries us a lot nearer to capital market reasonability,” Raisin founder Tamaz Georgadze said, adding that an Initial public offering for Raisin DS couldn’t be precluded. “We will keep all alternatives open.”
Georgadze said a financing round for the new firm will begin soon. “The market circumstance is right now excellent. It would not be preposterous to introduce another round of financing soon,” Georgadze added.
European Union rules on open banking expect banks to permit access to client data by registered third party providers to boost competition.
The rollout of the principles has given prolific ground to fintechs and started a whirlwind of deals and listings, for example, Visa’s 1.8 billion euro takeover of European open banking platform Tink and payment application Wise’s direct listing in London.
Deutsche Bank, PayPal co-founder Peter Thiel and Goldman Sachs are among the companies’ investors and will stay on board after the consolidation, said Tim Sievers, the head of Hamburg-based Deposit Solutions.
Raisin was valued at around 500 million euros in its last significant financing cycle two years ago, while Deposit Solutions has a valuation of around 1 billion euros, as indicated by its significant investor Finlab
The companies declined to reveal the financial details of the deal or the valuation of the combined firm.
