Crypto Trading Platform Bitpanda surges to $4.1 billion valuation after raising $263 million
Bitpanda is a cryptocurrency trading platform that has recently raised $263 million in a new round of funding. Now the company is valuing at $4.1 billion.In Bitpanda’s last private financing round which happened five months ago, its valuation was just $1.2 billion. In this round, Bitpanda’s valuation increased by almost three times.
Bitpanda has been backed by a venture capital firm which is co-founded by U.S. tech billionaire Peter Thiel namely Valar Ventures. Valar has backed Bitpanda for the third time now. “When you have partners you have a close connection with, and they have deep pockets, you don’t have to do the whole roadshow,” Bitpanda’s CEO and co-founder, Eric Demuth said.
Along with LeadBlock Partners and Jump Capital, Alan Howard and REDO Ventures had also invested in Bitpanda’s latest round.
Bitpanda was founded in 2014 and is a brokerage firm based out of Vienna that allows people to buy and sell cryptocurrencies and other precious metals. The company has started testing a service this year that allows users to trade stocks.
Bitpanda has said that several big companies have already started implementing the system and will be able to offer crypto and stock trading in a few months. Bitpanda has declined to name any of its clients. The CEO of Bitpanda claims that the startup has been profitable for up to five years until now. This is a sign of a successful startup as profitability is rare in the fintech space and many venture-backed companies are racking up heavy losses.
“Many companies, especially in the fintech area, are purely based on a combination of hype and growth. But the growth is mostly paid, so you have a product that is for free and you are simply buying your customers.” Demuth said.
According to the CEO, Bitpanda plans to use the raised money to expand its business in key markets like Spain, France, Portugal, and Italy.
CBW - External Analyst