Goldman-backed Berlin fintech buys crosstown rival

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A Berlin-based fintech company backed by Goldman Sachs Group Inc. is acquiring one of its crosstown rivals as it tries to capitalize on the 12 trillion euros ($13.3 trillion) pension and retirement savings market in Europe.

Raisin, originally a marketplace for bank-savings products, is buying 100% of Fairr’s share capital in exchange for Raisin shares as well as cash, the companies will announce on Tuesday. Fairr, co-founded in 2013 by a former energy trader, is a fintech firm specializing in pension schemes.

This is the second takeover for Raisin this year, following MHB-Bank. Fairr’s three founders are set to take on leading roles in the newly formed investments and pension products division at Raisin.

“We are always open to strategic acquisitions when they support our business model and growth - geographically or product-wise. It is always important to us that the team is right,” CEO Tamaz Georgadze told Bloomberg.

Goldman Sachs had invested 25 million euros ($28 million) in Raisin last month in exchange for a low single-digit percentage stake. The new funding brings the total volume of primary investments in the startup firm to 195 million euros. Earlier backers include PayPal Holdings Inc.

Bloomberg News