BlackRock and Tencent back European investment infrastructure as embedded finance surges.
Berlin-based Upvest has closed a $125 million funding round—its largest to date—signaling strong investor confidence in the API-first infrastructure layer powering Europe's retail investing boom.
What Happened
Upvest's Series C round was led by Sapphire Ventures and Tencent, with participation from BlackRock and existing investor Bessemer Venture Partners. The financing comprises $90 million in equity and $35 million in debt, valuing the company at $735 million—nearly double its €390 million valuation from just 12 months earlier.
Founded in 2017, Upvest provides the underlying brokerage and custody infrastructure that allows neobanks and fintech platforms to offer investment products to their customers. The company now processes over 100 million client orders annually across more than 30 institutional clients, including Revolut, N26, DKB, and Santander's Openbank.
With approximately 280 employees and regulatory licenses across Europe and the UK, Upvest is targeting €100 million in annualized revenue within the next 24 months while pursuing profitability.
Why It Matters
This funding round reflects a broader trend: investors are increasingly betting on the infrastructure layer powering embedded finance rather than just consumer-facing apps.
The embedded finance market is projected to reach $148-197 billion in 2025-2026, growing at over 30% annually. This surge is driven by demand for seamless investment capabilities integrated directly into banking and fintech platforms.
European fintech investment reinforces this momentum. According to KPMG's 2026 report, EMEA fintech investment totaled $29.2 billion in 2025, up from $26.47 billion in 2024—a 10% increase year-over-year.
The participation of both BlackRock and Tencent is particularly notable. BlackRock's involvement signals recognition that wealth management infrastructure is becoming a strategic asset class. Tencent's investment reflects continued Chinese tech interest in European fintech, particularly in infrastructure plays with global scaling potential.
Upvest's positioning is strategic: by providing API-first brokerage infrastructure, the company enables non-financial enterprises to offer investment products without building costly, regulated systems from scratch. This "B2B fintech" model provides recurring revenue and defensible market position—qualities investors increasingly favor in a higher-rate environment.
What's Next
Upvest plans to use the funding to expand its platform capabilities, including AI-driven advisory tools, new asset classes, and localized pension products. The company is also pursuing growth in the UK market, where regulatory reforms are creating new opportunities for investment infrastructure providers.
Key metrics to watch:
- Whether Upvest reaches its €100 million annualized revenue target within 24 months
- Expansion into pension and wealth management products beyond current brokerage offerings
- Competition from similar infrastructure providers like Trade Republic and Scalable Capital
The funding positions Upvest to consolidate its lead in European investment infrastructure at a moment when regulatory tailwinds and consumer demand are converging. For founders building in B2B fintech, the message is clear: the rails powering embedded finance are where the action is.