Raisin, the well-capitalized fin-tech startup that offers a pan-European marketplace for financial savings and investment merchandise, has acquired Fairr, a German startup interrupting the pensions industry.
The majority of the deal was in cash, although some Fairr traders left with a mixture of cash and Raisin shares. Fairr’s investors involved IBB Investitionsbank Berlin, Transamerica Ventures, Pro7Sat.1 Accelerator and Söderberg & Partners.
Raisin says the purchase of Fairr is a part of a strategy to enter the €12 trillion European pension and retirement savings business, which is a natural extension to the fintech’s existing aim on investments and deposits.
The concept is to be able to offer a multifunctional online market that only needs to be signed up once, along with the obligatory regulatory checks, for prospects to make investments, savings and now pension products.
Fairr’s founders are said to be sticking with and will take leading roles in the newly shaped investments and pension products department at Raisin, which will embrace Raisin’s existing funding product line WeltInvest. “The entire fairr workforce may also join them in becoming part of the bigger Raisin household,” says the company.
In the meantime, one of many main reasons to buy Fairr is that the startup has proven it can efficiently streamline and digitize the heavily-regulated German pension market, along with being able to offer a more cost-effective and versatile version of the German state-funded “Riester” pension product. It further provides products focusing on company pensions and supplementary retirement financial savings.