Kaspar&, based in St. Gallen, has completed a seed financing round of 2.5 million francs, according to a statement released on Friday. The company has attracted the software firm Avaloq as its new lead investor.

Other minority investors include the Basellandschaftliche Kantonalbank (BLKB), as well as institutional investors and business angels.

New Chapter in the Company's History

«Our strategic partnership with Avaloq opens a new chapter in our company’s history,» said Kaspar& co-founder and CEO Jan-Philip Schade (pictured below). «This latest investment by a key player in the Swiss financial ecosystem confirms the potential of our platform while enabling us to continue the growth trajectory of Kaspar&.» Kaspar& did not disclose the exact amount of Avaloq's investment.

Jan-Philip Schade (Image: Kaspar&)

The Kaspar& investment app will now be integrated into the Avaloq Core platform. This will allow banks to offer their clients easy access to investment opportunities.

Gaining Initial Experience

Kaspar& offers bank accounts and payment services, as well as an app for low-cost investments. Customers can invest small amounts through a «save-as-you-spend» solution, where credit card purchases are rounded up to the nearest franc and the difference is invested in index funds and ETFs. This helps customers get acquainted with investing, gain initial investment experience, and build wealth over time.

Interest Rate Shift Leads to Rethinking

Through integration into Avaloq's core banking system, financial institutions can offer the Kaspar& investment app to their retail and wealthy private clients. «With our investment in Kaspar&, we recognize the company’s potential to revolutionize investment in the Swiss retail sector,» said Avaloq CEO Martin Greweldinger.

According to Schade, fintech startups have shifted their focus in recent years. «In the past, the buzzwords were growth and unicorn. The ultimate goal was to acquire as many direct customers as quickly as possible, regardless of the cost. However, high margin pressure and the interest rate shift have forced a rethinking.»

Rather a Camel than a Unicorn

Investors now prefer sustainable and steady growth. Schade calls this the «camel» mindset, focusing less on funding and artificial growth and more on long-term stability and returns.

«Along with our cooperation with our first Swiss B2B customer (Acrevis Bank), the collaboration with Avaloq is the next logical step in this direction,» Schade added.

Kaspar& was founded in 2020 as a spin-off from the University of St. Gallen and ETH Zurich. The app was launched in February 2022, and the company holds a Finma license for asset management.