• Index provider to accelerate expansion in the derivative-based product space globally.
• Will also scale leading technologies that address the rising global demand for sophisticated investments.

MerQube, a US-based technology provider specializing in the design and calculation of innovative, rules-based investment strategies, announces the completion of a Series C funding round. The investors are 7RIDGE, a Private Markets Asset Manager investing in transformative financial technologies, and Deutsche Börse Group, a global financial market infrastructure provider. They join existing investors Allianz Life Ventures, Citi, Intel Capital, J.P. Morgan, Laurion Capital Management, and UBS. The amount raised is not being disclosed.

Global assets in passive index-linked strategies continue to grow at roughly 10% annually and are projected by PWC to reach around USD70 trillion by 2030.¹ Within this expansion, demand is rising for increasingly sophisticated index strategies, such as derivative-enabled autocallables and defined outcome, as investors seek bespoke solutions to address client requirements for risk-managed return profiles. Against this backdrop, MerQube’s unique index platform is purpose-built to deliver the customization, computational power, and optimized time-to-market, required to design, calculate, and operate these sophisticated strategies.

MerQube will utilize the funds raised to advance its leadership in Options-based structured ETFs and to expand the reach of its innovative Garage platform. The company also plans to further invest in its technology and broaden adoption across Wealth and Asset Management segments in the US, Europe, and APAC. In parallel, MerQube will develop capabilities to further enhance collaboration with existing clients in the Quantitative Investment Strategies (QIS) space.

Vinit Srivastava, CEO of MerQube, said: “We are thrilled to welcome our new investors, 7RIDGE and Deutsche Börse Group, as we accelerate delivery of our vision to close the fintech gap in passive investment. The trust provided by these two leading organizations, and our existing investors, will help us further our leadership in indexing for complex indices, bringing innovation and scale to complement our unique technology and deep understanding of the ecosystem.”

Carsten Kengeter, CEO and Co-Founder of 7RIDGE, added: “MerQube exemplifies the transformational financial technology that 7RIDGE specializes in investing in. MerQube’s sophisticated, rules-based strategies position it to benefit from clear shifts in the investment landscape as it enables transparent, technology-enabled solutions that can scale globally. We are excited to support the team as they accelerate growth and deepen MerQube’s role at the core of ETF and structured product global infrastructure.”

Christian Kromann, Member of the Executive Board of Deutsche Börse Group, commented: “We are thrilled to invest in and partner with MerQube. The demand for customization, flexibility, and speed-to-market in index-linked investing has been accelerating. MerQube’s cutting-edge technology and innovative approach to indexing respond to this demand. In addition, its focus on customized complex indices, strong presence in the Americas, cloud-native SaaS index, and self-indexing platforms make it highly complementary to our established index business. We are convinced that by combining strengths with MerQube, we will be able to further drive true innovation in the indexing industry.”

Founded in 2019, MerQube now has approximately USD 27 billion in assets tracking its indices. It specializes in designing and calculating a broad range of sophisticated strategies – from complex sell-side indices used as underlyings for ETFs and structured products to real-time and intraday indices that support flexible rebalancing and advanced execution. MerQube is the leading provider for indices powering defined outcome ETFs and a major player in derivatives and options-based indices.

Source: MerQube