Deal worth €50m with Hamburg-based Deposit Solutions marks largest Fintech investment for lender. Unclear from the outside how raisin and deposit solutions performance compare. Raisin diversified also in wealth, where deposit solutions seems to have more integrated deposut solutions for financials. Time will tell
Deutsche Bank is paying €50m for a 4.9 per cent stake in open-banking start-up Deposit Solutions in a transaction that values the Hamburg-based start-up at more than €1bn ($1.1bn). The deal turns Deposit Solutions into Germany’s second most highly valued fin-tech after Berlin-based lender N26, which in July was valued at $3.5bn when it raised $170m from its investors. Deposit Solutions operates software that links retail clients and lenders, allowing banks to collect deposits from people across Europe who are not their direct customers. It is a rival to Berlin-based Raisin, which among other investors is backed by PayPal. Deposit Solutions’ valuation more than doubled since its last financing round in August 2018, when it raised $100m from Munich-based private equity group Vitruvian Partners and other investors.