Darwinex has raised €3 million as part of its quest to expand the firm’s three businesses – fintech, brokerage, and asset management – across the globe.
The fundraiser was led by Stefan Jaecklin and Pinorena Capital, a fintech-focused investment company led by entrepreneur Illimar Mattus, which contributed with this first investment to support Darwinex expansion journey.
The Darwinex co-founders and a number of key employees also participated in the funding round that seeks to further grow the already strong numbers reported in its latest financial disclosure showing revenue for the Uk FCA-regulated entity’s financial year 2020 jumping by 72%, exceeding €4.69 million.
The broker has recently launched trading in over 60 futures and all US single stocks across Trader Workstation (TWS) platform,
Its proprietary front-to-back Fintech solution caters to traders and small to medium-sized hedge funds who can convert their trading strategies into investable assets.
Darwinex also boasts a monthly capital allocation program of up to €90 million per annum. DarwinIA supports strategies with solid fundamentals for generating returns. Up to €7.5 M notional capital is allocated to the best DARWINs every month, the broker claims.
Juan Colón, co-founder and Chief Executive Officer at Darwinex, commented: “We are happy to see all co-founders and Darwinex team members participating in this round along with existing significant investor Stefan Jaecklin. We are also pleased to see Pinorena Capital joining the rank of shareholders and bringing not only capital, but also experience on how to scale and grow financial firms globally. We are now ready to bring our exceptional trading and capital-raising opportunities to a much larger global audience and disrupt the asset management industry”.
Darwinex has no plans to limit its growth prospects to the United Kingdom.
It was in 2018 that Darwinex launched crypto CFD trading on MetaTrader 4 and MetaTrader 5 with liquidity provided by LMAX Global. At the time, CEO Colón said “cryptocurrencies were an obvious asset class to offer given the growing maturity of the market and the appetite we are seeing for trading strategies on these underlying.”
A lot has changed since then. The Financial Conduct Authority has ordered firms registered with the financial watchdog to stop offering crypto CFD products to retail investors.
Brokers had no choice but to oblige and, by the end of March 2021, all retail operations offering such instruments closed that line of business or even shut down their whole operation in the United Kingdom, such as Bybit.