TLDR: Y Combinator-backed fintech startup, Pluto Markets, has raised $2.6 million in funding. The Danish company offers brokerage services in the Nordics and recently obtained an EU investment license to support its expansion. Don’t have an account? Become an Insider and start reading now.
Pluto Markets, a Copenhagen-based trading app that has received backing from startup accelerator Y Combinator, has raised $2.6 million in fresh funds. The Danish fintech startup, launched in 2021, aims to disrupt the market for retail trading offerings in Europe by providing access to various assets, including stocks and fractional shares, with a focus on European countries that do not use the Euro as currency.
The company recently obtained an EU investment license as it plans to expand its services. Joakim Bruchmann, one of Pluto’s co-founders and a former trader at Goldman Sachs, explained that the neobrokerage space has become more challenging, with companies shifting away from a strategy of growth at all costs and instead focusing on growth when profitable. Pluto aims to focus on markets where there is a gap and maintain that focus to ensure success.
Unlike its competitors, Pluto secured an EU-wide investment license before raising any significant funding. The company wants to avoid spending excessive amounts of money early on and instead plans to wait until it reaches product-market fit. So far, Pluto has raised $2.6 million in capital from Berlin-based fund Magnetic and angel investments from founders of leading Danish companies such as Synthesia and Pleo.
The funding will primarily be used to expand Pluto’s team, with the aim of reaching around 10 people as the company scales in the Nordic region before expanding into other non-Euro markets. By focusing on local currencies and understanding the unique regulatory environments of each market, Pluto aims to differentiate itself from established brokerages like Saxo Bank.
Overall, Pluto Markets’ recent funding round will enable the fintech startup to continue its growth and disruption in the European retail trading market. With a focus on local currencies and a solid understanding of each market’s regulatory environment, Pluto aims to compete with traditional brokerages and establish itself as a key player in the industry.
