Kaspar&, a fintech firm based in St. Gallen, Switzerland, has secured a new lead investor. The company, which focuses on innovative investment solutions, recently completed a seed financing round of 2.5 million francs, attracting Avaloq, a notable software company, as its primary backer.
The investment round also saw participation from the Basellandschaftliche Kantonalbank (BLKB), alongside other institutional investors and business angels. This infusion of funds marks a pivotal moment for Kaspar&, as the partnership with Avaloq is expected to significantly boost its growth and operational capabilities.
Kaspar& co-founder and CEO, Jan-Philip Schade, emphasized the strategic importance of this partnership, noting that Avaloq’s involvement underscores the potential of their platform. Although the specific amount of Avaloq’s investment remains undisclosed, the collaboration will see Kaspar&’s investment app integrated into the Avaloq Core platform. This integration is set to provide banks with a streamlined tool to offer their clients easy access to investment opportunities.
Kaspar& has carved a niche in the market by offering innovative banking and investment services. Their app allows users to make low-cost investments by rounding up credit card purchases to the nearest franc and investing the difference in index funds and ETFs. This “save-as-you-spend” model is designed to help users, particularly beginners, ease into the world of investing, gradually building their wealth with minimal effort.
With the integration into Avaloq’s core banking system, financial institutions can now extend Kaspar&’s app to their retail and affluent private clients. Avaloq CEO, Martin Greweldinger, expressed confidence in Kaspar&’s potential to revolutionize investment options in the Swiss retail sector.
Schade highlighted a shift in the fintech landscape, noting that the industry has moved away from a focus on rapid customer acquisition and exponential growth, often referred to as the “unicorn” approach. Instead, there is now a preference for sustainable, steady growth, likened to a “camel” mindset. This approach prioritizes long-term stability and profitability over short-term gains.
The collaboration with Avaloq aligns with Kaspar&’s broader strategy of fostering sustainable growth. Following their first B2B partnership with Acrevis Bank, this new partnership is seen as a natural progression towards achieving their long-term goals.
Kaspar& was founded in 2020, originating from the University of St. Gallen and ETH Zurich. The company launched its app in February 2022 and holds a Finma license for asset management. This latest investment and strategic partnership signal a promising future for the company as it continues to innovate and expand its offerings in the financial technology space.