German deposit and investment marketplace Raisin has acquired home-grown pension specialist Fairr for an undisclosed sum.
Founded in 2013, Fairr offers low-cost, digital investments based on ETF investment approach.
The deal marks the foray of Raisin into the €12 trillion European pension and retirement savings market.
The latest acquisition follows Raisin’s acquisition of MHB Bank few months back. Last month, the company also raised $28m from American investment banker Goldman Sachs.
As per the agreement, Fairr’s three founders will assume the management positions in the newly established investments and pension products division at Raisin.
Additionally, the entire Fairr team will also join the Raisin’s division.
Fairr co-founder Jens Jennissen said: “For consumers, retirement savings are still a very opaque, dusty, cost-intensive business. With Raisin’s access to the market we will be able to expand our reach significantly and continue to revamp the retirement savings market.
“We’re proud of what our team has achieved over the last 6 years and are very excited about our future together with Raisin.”
Raisin co-founder and CEO Tamaz Georgadze said: “Through the takeover we will be able to expand our product offering specifically around the important aspects of retirement saving.
“Together we want to grow and bring new momentum to the sector. Next to bank deposits, retirement savings is the most important asset class for individuals, with a volume of €2trn ($2.2trn) in Germany alone.”
Raisin has operations in 31 European countries and is going to roll out the operations in the US next year.