Lightyear, a European challenger to trading platform Robinhood, has raised $25 million of funding.
The company told CNBC that Lightspeed Venture Partners led the deal, a rare vote of confidence for an upstart brokerage at a time when global stock markets are deep in the red.
Lightyear is a commission-free trading platform that was founded in London last year. Sokk and Aamer used to work at Wise.
Financial markets have been too complex for a long time, according to a statement shared with CNBC.
The Lightyear team is lifting the lid on the world of investing by making it more transparent and empowering people through education to choose the products which are right for them.
The tycoon took a stake in Lightyear through his group.
It launched in the UK in September. Lightyear has plans to expand.
In addition to Germany and France, the firm will launch its app in 19 other European countries. Next, it wants to launch in non-euro countries like Sweden and Norway.
The deal shows how investor appetite for an investment app focused on Europe is still strong despite a lull in trading volume in the US.
She said retail investing doubled in the US last year. Europe is headed in that direction.
The cash injection comes at a difficult time for equity markets, which have fallen due to fears of a looming recession.
Lightyear's CEO is not concerned about the declines in public markets.
He said in an interview that the markets go up, down or sideways because they are building something that takes a long time.
Europe may be behind the U.S. when it comes to retail trading, but the region has become more crowded with online trading apps.
Lightyear is facing competition from both established brokers and newer ones. The European market is expected to be entered by Robinhood, although with a focus oncryptocurrencies.
The company tried to launch in the region a few years ago but decided against it. The U.K.-based exchange has been acquired by it.
Rutgers was hired as Lightyear's chief operating officer.
Concerns about rising inflation and tighter monetary policy have caused investors to lose faith in high-growth tech companies.
Lightyear is still unprofitable. Currency conversions are the main source of income at the moment.
A paid subscription service that is set to launch later this year is part of the firm's plan to broaden its revenue stream.
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