According to Sifted, Berlin-based Trade Republic is heading toward a €12.5 billion valuation in a secondary share sale that would make it Germany’s most valuable startup. The transaction, expected to close early next year, sees early investors Creandum and Project A offloading shares while existing backers Founders Fund and Sequoia double down. Trade Republic currently serves over 10 million customers with €150 billion in assets under management and received its full EU banking license in late 2023. The fintech was last valued at €5 billion in its 2021 Series C round and has since expanded from neobroker services into full banking offerings. This secondary sale helps clean up the cap table for a potential future IPO while providing liquidity for early investors.
The great investor shuffle
Here’s what’s really interesting about this move. You’ve got Creandum and Project A – some of the earliest believers – taking money off the table. That’s completely normal for VCs who’ve been in since the early days. But then you’ve got the heavy hitters like Founders Fund and Sequoia buying more. That tells you everything you need to know about their confidence in Trade Republic’s trajectory.
Think about it this way: when the smartest money in Silicon Valley decides to increase their position at a €12.5 billion valuation, they’re seeing something most people aren’t. They’re betting this thing goes much, much higher. And given that Trade Republic is already profitable and doesn’t need to raise more money before going public? That’s a pretty compelling story.
The German fintech battle heats up
Now here’s where it gets really competitive. At €12.5 billion, Trade Republic would surpass defense tech Helsing’s €12 billion valuation to become Germany’s most valuable startup. But the real comparison everyone’s making is with Revolut, which just confirmed a $75 billion valuation after its own secondary sale.
Basically, we’re watching two different approaches to European fintech dominance. Revolut is going for global scale with 100 million customers as their target. Trade Republic? They’re digging deeper into the European market with their full banking license and expanding product suite. Both are profitable, both are preparing for IPOs, but they’re playing very different games.
IPO preparation in full swing
Secondary sales like this are becoming the new normal for preparing companies for public markets. They let early investors cash out some chips without the company needing to raise new money. They bring in new pre-IPO investors who want a position before the big show. And they clean up the cap table so there aren’t too many cooks in the kitchen when the company eventually lists.
The timing here is pretty strategic too. Trade Republic gets to demonstrate massive valuation growth from €5 billion to €12.5 billion without even needing to raise primary capital. That’s a powerful narrative to take to public market investors. And with profitability already in hand? They can basically IPO whenever market conditions are right rather than being forced by cash needs.
What comes next?
So where does Trade Republic go from here? The obvious path is an IPO, probably within the next 12-24 months if market conditions cooperate. But the more interesting question is what they do with that full EU banking license. We’re already seeing them expand beyond trading into current accounts and savings products.
Could they become the primary bank for millions of Europeans? That seems to be the ambition. And with their profitable foundation, they’ve got the runway to make it happen without the desperation fundraising we’ve seen from other fintechs. The European banking landscape hasn’t seen this kind of disruption in decades, and Trade Republic is positioning itself right at the center of it all.
