Bux, a company located in The Netherlands has raised an additional $12.5 million from a new round of funding. The funding round was led by Velocity Capital and Holtzbrinck Ventures; including a debt financing from Kreos Capital. The total funding for the company after the new round is $35 million; since being incorporated over five years ago.
The company intends to invest the money for its proposed app called “STOCKS” for commission free investments. Bux has also revealed that some amount of the fundings is being used in the acquisition Ayondo Markets Limited (AML), an online broker. The back-end provider for the company is Ayondo.
Planned to hit the markets this summer, STOCKS is quite different than the BUX app that provides a “gamified” trading experience and generates revenue per trade.
According to the CEO of Bux, the present trading app can carry out trades in CFDs in indices, stocks, forex, and other financial products on a short term basis with limited leverage.
With STOCKS, users will have options to make mid to long investments; investing in real shares commission-free (as opposed to CFD trading). The app will deliver a unique and simplified experience to the users. The users can also access a community filled with investors to follow, learn, and explore new investment opportunities from them.