Alpaca, a San Mateo-based fintech company specializing in API-driven brokerage services, has successfully raised $52 million in a Series C funding round. This substantial investment aims to propel the company’s expansion into new international markets, including the Middle East, Europe, and Asia.
Company Overview
Founded in 2015 by former investment banker Yoshi Yokokawa and Chief Product Officer Hitoshi Harada, Alpaca offers a developer-first API brokerage platform. This platform enables businesses to integrate stock and cryptocurrency trading functionalities seamlessly into their applications. By providing real-time market data and comprehensive brokerage infrastructure through modern APIs, Alpaca has positioned itself as a pivotal player in democratizing access to financial markets.
Funding Details and Strategic Goals
The recent Series C funding round saw participation from both new and existing investors, including Derayah Financial, 850 Management, National Investments Company Kuwait, Unbound, and Portage Ventures. This infusion of capital brings Alpaca’s total funding to $170 million.
CEO Yoshi Yokokawa emphasized the significance of this funding, stating, The recent fundraising for us is very important because this is really a catalyst to go global infrastructure, instead of the U.S.-only anchored company and platform. The funds are earmarked for several strategic initiatives:
– Global Expansion: Alpaca plans to extend its services into the Middle East, Europe, and Asia. This includes obtaining necessary regulatory licenses in these regions, similar to those it holds in the U.S., Japan, and the Bahamas.
– Product Diversification: The company aims to develop new products, including the addition of non-U.S. equities from European and Asian markets, and to support 24/5 trading of U.S. stocks.
– Infrastructure Enhancement: Alpaca intends to bolster its technological infrastructure to accommodate the anticipated increase in global clientele and trading volume.
Current Market Position and Growth
As of April 2025, Alpaca serves over 5 million brokerage accounts and collaborates with more than 200 financial clients across 40 countries. The company’s revenue and assets under custody have tripled, and its trading volume has quadrupled since its previous funding round in October 2023. Additionally, Alpaca has achieved the status of a fully self-clearing broker-dealer with DTCC membership, enabling it to handle all trade clearing and settlement processes internally.
Strategic Partnerships and Previous Investments
Alpaca’s growth trajectory has been bolstered by strategic partnerships and investments. In October 2023, the company received a $15 million investment from Japan’s SBI Group. This partnership aimed to expand Alpaca’s operations in Asia and extend its services to enterprise financial institutions for the clearing and execution of U.S. securities. As part of this collaboration, Alpaca acquired a broker-dealer license under the Japan Financial Services Agency (FSA), allowing it to offer U.S. stock investing services in Japan.
Future Outlook
With the new funding, Alpaca is well-positioned to accelerate its global expansion and product diversification efforts. The company’s commitment to providing accessible and integrated financial services aligns with the growing demand for seamless trading solutions worldwide. By leveraging its API-driven platform, Alpaca aims to empower businesses and developers to offer comprehensive trading services to their end-users, thereby democratizing access to global financial markets.
