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Tencent makes new overseas fintech foray, joining biggest shareholder Prosus in US$80 million funding round of European online broker BUX

  • The latest investment by Tencent and Prosus gives the two internet giants a greater foothold in Europe’s fast-growing web-based trading sector
  • Web-based trading platforms have been on the rise in Europe as more of the financial industry moves online and interest rates remain depressed

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Tencent Holdings and Netherlands-based Prosus led a funding round of US$80 million that European online broker BUX will use to expand its zero-commission investment platform. Photo: AP
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Tencent Holdings and its biggest shareholder, Prosus, are investing in European online-trading group BUX, giving the two internet giants a greater foothold in the fast-growing sector.
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Tencent, operator of Chinese super app WeChat, and Netherlands-based Prosus led a funding round of US$80 million that BUX will use to expand its zero-commission investment platform, BUX chief executive Yorick Naeff said in an interview. The Amsterdam-based company will also hire more staff, especially software engineers, and adapt the platform for different European markets, he said.

“There used to be a huge hurdle for people to start investing, especially for younger people,” Naeff said. “It was overcomplicated. The app makes investing affordable, accessible and intuitive for the newer generation especially.”

Web-based trading platforms have been on the rise in Europe as more of the financial industry moves online and interest rates remain depressed, while trading in cryptocurrencies has surged in popularity. The continent is still a relatively untapped market compared with the US, Naeff said, and companies including BUX and Bitpanda are among those attracting investor capital.

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Bitpanda, a Vienna-based cryptocurrency-focused broker, raised US$170 million last month to make it Austria’s first unicorn, passing the US$1 billion valuation mark.

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