In 1984, Volkswagen partnered with a Chinese automaker because it was required by Chinese law.
Now the German company is partnering with Chinese automakers because it wants to use their technology.
Volkswagen Group today maintains the original joint ventures it made with Chinese automakers in those early days of its foray into what has become the world’s largest car market. But the fact that it is now relying on firms such as Chinese EV maker Xpeng for hardware and software underscore how the balance of power in the automotive industry is shifting toward the companies that produce these now high-value components. Chinese companies are proving they can do it faster, often cheaper, than anyone else.
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VW Group, which has for much of the last few decades been a top-selling brand in China, has lately struggled to maintain its position.
Volkswagen’s China profits fell about 45 percent in 2025 — from roughly $2 billion to $1.1 billion. The company said in its annual report that it now faces intense competition from Chinese firms.
It is not a unique issue. Essentially every non-Chinese automaker is watching market share erode in the country as homegrown companies create vehicles that more directly serve what Chinese customers want.
In particular, Chinese buyers have a taste for what are often called “software-defined vehicles.” They are connected and updatable, and essentially allow drivers to do everything through a car they would do through a phone.
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“The Chinese vehicle owner can do his banking using voice commands or order takeout to meet him when he arrives at his house, or do any number of things that seem a little unusual to us here in the West, because we just aren’t built that way,” said AutoForecast Solutions analyst Conrad Layson. “However, the Chinese buyer can’t do that in a Chinese-built Volkswagen, so they went where the convenience was. They were able to bring their digital lives along with them into and out of the car.”
Chairman and CEO of Chinese EV manufacturer Xpeng He Xiaopeng visits the booth of the German carmaker Volkswagen during the International Motor Show IAA on Sept. 8, 2025, in Munich, Germany.
Tobias Schwarz | AFP | Getty Images
VW’s own struggles to build an in-house software division have been widely documented — after years of effort and billions spent, the company abandoned its go-it-alone approach and turned to collaborations. Xpeng is a major partner in China, while in North America and elsewhere, VW has partnered with Rivian to build cars.
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Xpeng, which makes its own vehicles as well, helped VW’s China division build a hardware and firmware architecture called CEA for the German company’s vehicles in the country.
In February, news broke that VW Group would be the first customer for Xpeng’s VLA 2.0 automated driver assistance system. If it performs as advertised, it will equal or surpass anything made by any other global automaker, Layson said.
Then in March, the first vehicle the two companies co-developed, the ID.UNYX 08, rolled off the assembly line.
The two companies brought the vehicle to production car in 24 months, the CEA architecture in just 18. That is “unheard of in the West,” Layson said. “But that’s China’s speed for you.”
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Global automakers typically require a three-to-five-year timeline for a new vehicle, or even a significant refresh.
Rivian and VW are collaborating on just about all of the same things the German automaker is doing with Xpeng. The deal has given Rivian a roughly $6 billion lifeline at a time when the EV maker is ramping up the production of its mid-priced, higher volume R2 SUV.
The comparisons between the two companies indicate how far Chinese automakers have come, said Tu Le, founder of Sino Auto Insights, a firm that researches the Chinese automotive market.
Rivian is working on its own chips, for example. So is Xpeng, but its chip is already being fabbed.
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“Xpeng is already there and Rivian wants to get there,” Le said.
Though Xpeng has a technological edge, its partnership with VW does not necessarily pose an immediate threat to Rivian — at least in North America, he added.
Trade disputes and political tension are spurring carmakers to strike these different partnerships. For example, the U.S. has banned certain kinds of Chinese software and hardware for connected vehicles.
The longer-term picture is unclear. Xpeng, like all Chinese automakers, wants to compete globally, and not just through partnerships with other automakers. On March 25, the company started selling two models in Mexico, for example.
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Companies such as Tesla, Rivian and Lucid Motors are at the forefront of building these kinds of connected vehicles outside of China.
Still, if Chinese firms can prove they can outpace Western ones in their home market, and export those features to other markets, VW may face a tough choice down the road.
“The question probably you should ask is do they use Rivian stack or Xpeng stack in Europe, because we know that they’re going to use Xpeng in China. And we know that for the time being, they’re going to use, in North America, the Rivian stack. But ultimately whose is better, whose is probably more robust and more appropriate?” Le said.
He added that the long-term risk for a company like Volkswagen — or Stellantis, which has partnered with Chinese automaker Leapmotor — is that they become essentially contract manufacturers, Le said. That would come to fruition if the high-value components like software and technology that define the modern vehicle are increasingly made in China.
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“My question might be: If Xpeng hits on all cylinders, will they even need Volkswagen Group?” Le said. “The shoe is on the other foot. And I think more and more people are starting to realize this is real. Their products are significant, and they are a threat to our livelihoods.”
Neither Rivian, VW Group nor Xpeng responded to CNBC’s request for comment or interview.
Taking a chance on something is exciting, and many people are drawn to the thrill that it offers.
Whether it’s camping out for the latest deals on Black Friday, playing slots or taking part in a gameshow, the chance to win big taps into the part of our brain that enjoys taking risks for the chance of a reward. Taking chances creates excitement and the rush people feel isn’t about winning itself, but not knowing what will happen next.
The Psychology of Risk Taking
Our brains have developed over many millions of years of evolution to enable us to survive in difficult and challenging environments. One of the key components of human psychology is related to how the brain rewards risk-taking behaviour. When we anticipate a potential reward, the brain releases dopamine, which increases motivation and excitement.
This reward system was a useful survival tool in the early days of human history, motivating our ancestors to hunt, forage for food and discover new things. However, this same system is still present today. It motivates a lot of human behaviour, especially when it comes to taking risks.
Although we still experience caution in the face of risk, with losses feeling worse than wins in many cases, low-cost risks can override this feeling. That’s why low-stakes slots are so popular. If the possible gain feels large and the potential loss is small, the risk feels like it’s worth it.
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The Unpredictability and Excitement of Online Casino Games
Online gambling is essentially an expression of our attraction to risk and reward. Casino and sports betting platforms are designed to tap into the brain’s need for dopamine and anticipation by offering unpredictable outcomes that keep players engaged.
Most platforms offer a variety of games and ways to play, but few are as popular as online slots. These offer simple gameplay mechanics that are designed to stimulate the brain’s variable reward system as much as possible. Megaways slots offer a unique mechanic which changes the number of ways to win on every spin, making every round unpredictable and keeping players anticipating the outcome every time. The high number of possible winning combinations, in addition to the bonus features often built into these games, help make them especially engaging.
However, players should always be mindful of their limits and approach gambling responsibly to ensure it remains a safe and enjoyable experience.
Cultural and Social Factors
Our tendency to take risks is a major part of our brain chemistry, but it’s also influenced by society and culture. Making a gamble that pays off creates a great story that’s worth telling all your friends. People love to share stories of times they’ve taken risks, and even if it doesn’t work out, it creates an interesting anecdote to share. Those who have hit a big jackpot or won a game show will become widely known in their circle of friends, with the story likely retold again and again over the years.
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Risk-taking can also be a fun social activity. Many people who enjoy playing bingo or enjoying casino games prefer to do so in the company of their friends, where they can share the excitement of their wins and receive commiserations for their losses or near wins. Game shows thrive on the energy of the crowd, where cheers, gasps and even groans help add to the drama and excitement, both for the contestants and the audience watching.
The media has also helped to popularise certain types of risk-taking behaviour. High-stakes game shows, where contestants chase big prizes in a double-or-nothing round, are incredibly popular. Seeing someone take a big risk, whether they win or lose, feeds the fascination with risk-taking. In addition, social media has helped popularise risky trends and allowed people to share their stories of taking chances more easily.
Why We Keep Coming Back
Risks may not always pay off, but people will keep coming back again and again, especially if the stakes are low. Take a lottery ticket, for example. Some people will buy a ticket every week for their entire lives without ever winning. Even just fantasising about what you’d win with the jackpot is enough to motivate your brain to do it again the following week.
Hope is entertaining, and the possibility of achieving something great, even if the odds are low, will create enough motivation to take that chance. Imagining the win can often be just as satisfying as the win itself. For a lot of people, hope and daydreaming can provide control over an uncertain and unpredictable world.
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Even when the odds aren’t in our favour, taking a chance feels exciting and it can be a lot of fun. Of course, risk-taking can also lead to negative outcomes, especially when you’re gambling with your health or with real money. As a result, it’s important to always consider the potential impact of any risk, and avoid doing things that are considered unsafe or that might result in harm.
Google CEO Sundar Pichai joined millions worldwide in celebrating the successful launch of NASA’s Artemis II mission Wednesday evening, posting on X that “we have liftoff” and imagining the “amazing view” the four-person crew will have looking back at Earth from lunar orbit during the first human journey around the Moon in more than five decades.
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“And we have liftoff! 🚀 Wishing the best to the Artemis II crew on their incredible journey ahead,” Pichai wrote shortly after the Space Launch System rocket thundered off Launch Complex 39B at Kennedy Space Center at 6:35 p.m. EDT on April 1, 2026. “Imagining the amazing view they have, looking down at Earth from space would be a beautiful thing.”
And we have liftoff! 🚀 Wishing the best to the Artemis II crew on their incredible journey ahead.
Imagining the amazing view they have, looking down at Earth from space would be a beautiful thing.
The 32-story SLS rocket, the most powerful ever built by NASA, carried the Orion spacecraft — named Integrity — and its international crew of NASA astronauts Reid Wiseman (commander), Victor Glover (pilot) and Christina Koch (mission specialist), along with Canadian Space Agency astronaut Jeremy Hansen (mission specialist). The 10-day mission marks the first time humans have ventured beyond low-Earth orbit since Apollo 17 in December 1972.
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Historic Launch Caps Years of Preparation
The blastoff unfolded after multiple delays caused by technical issues and weather, but proceeded smoothly within the two-hour launch window. Tens of thousands gathered along Florida’s Space Coast to witness the event, while live streams drew global audiences riveted by the return of crewed lunar exploration.
Artemis II is a critical uncrewed-to-crewed test flight in NASA’s Artemis program, which aims to establish a sustainable human presence on and around the Moon as a stepping stone to Mars. Unlike Apollo missions that landed on the lunar surface, Artemis II will follow a free-return trajectory, swinging around the Moon without landing before splashing down in the Pacific Ocean around April 10.
During the journey, the crew will travel farther from Earth than any humans since Apollo 13 — reaching a maximum distance of approximately 252,799 statute miles. They will test Orion’s life-support systems, navigation, communication and emergency procedures in deep space, gathering data essential for Artemis III, the first planned crewed lunar landing since 1972.
NASA officials described the launch as flawless, with early telemetry showing all systems nominal. Post-launch news conferences confirmed the crew was healthy and the spacecraft performing as expected in initial orbit.
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Crew Represents New Era of Diversity and Collaboration
The Artemis II crew embodies NASA’s push for diversity and international partnership. Wiseman, a U.S. Navy test pilot and veteran of a six-month International Space Station mission, commands the flight. Glover, the first Black astronaut to pilot a spacecraft, previously spent 168 days aboard the ISS. Koch holds the record for the longest single spaceflight by a woman. Hansen, the first Canadian selected for a lunar mission, brings international expertise.
Each astronaut has spoken about the personal significance of the mission. Many recalled childhood dreams of spaceflight and the perspective-shifting “overview effect” — the profound sense of Earth’s fragility and unity experienced by those who view the planet from afar. Pichai’s tweet directly echoed that theme, highlighting the emotional and philosophical impact of seeing Earth as a borderless blue marble.
Tech Leaders Weigh In on Space Milestone
Pichai’s enthusiastic response underscores growing synergy between Silicon Valley and the space sector. Google and Alphabet have supported NASA through AI-driven data analysis, Earth-observation tools and quantum computing research that could one day aid deep-space missions. Pichai has previously floated ambitious ideas, such as quantum clusters in space powered by systems like SpaceX’s Starship.
His post quickly garnered thousands of likes and replies, with users praising the inspirational tone. Fellow tech executives and space enthusiasts amplified the message, turning the launch into a viral moment across platforms. One reply noted, “Every astronaut who’s seen Earth from space comes back changed — borders invisible, oceans connected, the whole thing impossibly fragile.”
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The mission also highlights Canada’s role in Artemis through the Canadian Space Agency’s contribution of the Canadarm3 robotic arm for future lunar gateways.
Broader Implications for Artemis Program
Artemis II is the second flight in the program after the successful uncrewed Artemis I in 2022. Success here clears the path for Artemis III, targeted for no earlier than 2027, which will land the first woman and first person of color on the Moon near the south pole.
The program faces scrutiny over costs, delays and technical challenges with the SLS rocket, but Wednesday’s launch has renewed momentum. NASA Administrator Bill Nelson called it “a giant leap for a new generation of explorers.”
Environmental and scientific payoffs include studying the Moon’s south pole for water ice that could support long-term habitats and testing technologies for Mars missions. The crew will conduct experiments on radiation exposure, spacecraft performance and human factors in deep space.
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Public and Scientific Excitement Builds
Social media erupted with congratulations and anticipation. Replies to Pichai’s post and official NASA channels reflected awe at humanity’s return to lunar ambitions after a half-century hiatus. Educational institutions and space advocacy groups used the moment to inspire students in STEM fields.
As the crew settles into their multi-day journey, mission control will monitor every system. The astronauts are expected to share photos and videos, including the Earth views Pichai referenced, offering the public a rare glimpse of our planet from nearly a quarter-million miles away.
Pichai’s simple yet evocative tweet captured the universal appeal: not just the engineering triumph, but the perspective it offers on humanity’s place in the cosmos.
With Artemis II now underway, the world watches as four astronauts push the boundaries of exploration once more. Their safe return in about 10 days will mark another historic chapter — and potentially provide the “beautiful” Earth vista Pichai imagined, reminding everyone of the planet’s shared fragility and the drive to explore beyond it.
Foreign institutional investor (FII) flows are likely to play a decisive role in driving the next leg of the market rally, according to Saibal Ghosh.
In an interaction with Kshitij Anand of ETMarkets, Ghosh highlighted that while FY26 has been marked by volatility due to geopolitical tensions and global uncertainties, India’s long-term structural story remains intact.
He added that a moderation in global themes such as the AI-led rally, along with improving earnings visibility and easing macro headwinds, could bring foreign investors back in a meaningful way, setting the stage for renewed bullish momentum in Indian equities. Edited Excerpts –
Q) FY26 returns have turned negative due to geopolitical concerns around West Asia. How do you sum up the financial year?
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A) This has been a challenging year for the market. Just as synchronized fiscal and monetary policies were beginning to restore growth traction, geopolitical conflict disrupted the momentum.
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While our forex reserves remain a core strength, we are navigating a capital account deficit; first since the Global Financial Crisis (GFC). This problem is now further exacerbated by the energy crisis and making the currency vulnerable. However, it’s important not to lose sight of the bigger picture. If we look past the immediate noise, India’s track record is stellar. We’ve seen 15%+ returns over the last 10 years, proving that while the short term is bumpy, the long-term Indian equity story is still one of the best in the world. Q) As we head towards FY27, what are the key triggers investors should keep in mind that could lead to a market reversal or return of bullish sentiment? A) I believe the backdrop will improve quickly once the geopolitical situation settles and we get clearer earning growth visibility. That said, the real ‘engine’ for a sustained rally will be the return of FIIs in a big way.
India is still one of the best long-term growth stories out there, but we lost the AI theme. Our market has recently been overshadowed by global AI hype.
Now that the AI and AI connected play is looking a bit overdone, a valuation correction there could be exactly what brings foreign investors back to our market.
Q) Which sectors should be on investors’ radar for FY27? A) Our overarching theme remains centered on the domestic growth story. However, at this juncture, it is prudent to integrate a direct inflation proxy within the portfolio.
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We simply cannot afford to ignore the sectors acting as the primary source for the high inflationary cycle that is expected to accelerate in the coming days.
Within the domestic framework, we maintain a strong preference for the banking and financial services sectors as our primary growth play.
Q) How should one approach gold and silver in the new financial year? A) While gold is outside my primary area of expertise, its role as a hedge during periods of heightened uncertainty is undeniable.
However, current valuations are exceptionally stretched, which complicates tactical entry and suggests that traditional empirical prudence may not apply in the short term. Looking further ahead, I believe a structural allocation to gold is justified as U.S. fiscal dominance faces headwinds and gold increasingly replaces U.S. Treasuries as the premier global risk hedge.
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Q) Do you think there are certain sectors that have already corrected and are now available at attractive valuations? A) While I believe the banking and real estate sectors have reached to a point where measured positions are warranted, the broader market remains expensive.
When we subject our investment universe to terminal growth rate modeling, we find very few opportunities priced under reasonable assumptions.
The fundamental wisdom of these models suggests that current valuations are pricing in a level of growth that is difficult to justify despite India remaining one of the best structural growth stories in the world.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
Arrivals could fall to lowest level in three years as war drives up fuel costs and disrupts global travel
Thailand’s tourism industry faces a sobering year ahead, with the Ministry of Tourism and Sports warning that the country could receive three million fewer foreign visitors in 2026 — a near 10% drop from last year — if the Middle East conflict continues for another six months.
The shortfall would cost the economy an estimated 150 billion baht, wiping out a tenth of the country’s total foreign tourist receipts, according to Natthriya Thaweevong, the ministry’s permanent secretary.
“The heart of tourism is the journey, and to make that journey you need fuel,” Ms Natthriya told Bloomberg News. “Everyone is affected and faces the same high costs. We’ll lose tourists from all over.”
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The warning puts the government’s ambitious target of 35 million foreign arrivals this year in serious doubt. Should the worst-case scenario materialise, visitor numbers could slip back to around 28 million — the level recorded in 2023 — erasing years of post-pandemic recovery efforts.
A Sector Already Under Pressure
The timing could hardly be worse. Tourism, which contributes roughly 12% to Thailand’s GDP, has struggled to regain its footing since the Covid-19 pandemic. Last year, the country welcomed 33 million visitors — itself a 7.2% decline from the prior year — as the country was battered by an earthquake, historic flooding, and deadly border clashes with Cambodia. In the first three months of 2026, arrivals are already running about 3% behind the same period a year ago.
Pivoting to New Markets
In response, authorities are redirecting marketing budgets originally earmarked for Europe and the United States toward country-specific campaigns in the Middle East. The government is aiming to attract at least 200,000 visitors from the region this year — roughly a quarter of last year’s total.
The appeal is clear: Middle Eastern tourists spend an average of 80,000 baht per trip, compared to 61,000 baht for Europeans and just 39,000 baht for Asian visitors. Their willingness to pay premium fares, including charter flights, makes them a resilient market even as airline costs soar.
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Thailand is also doubling down on medical tourism, with flagship hospital groups Bangkok Dusit Medical Services and Bumrungrad Hospital leading efforts to position the country as a regional healthcare destination. Separately, short-haul campaigns targeting neighbouring Asian markets are being rolled out to compensate for reduced long-haul traffic.
Domestic Cushion
On the home front, the government plans to introduce incentives next month to encourage domestic travel, including tax allowances on tourism receipts. Officials are also weighing debt relief for hotel operators and fuel rationing at petrol stations to ensure tour buses can keep running.
Despite the headwinds, Ms Natthriya struck a determined note. “Now, with the war affecting things, this growth driver might be faltering,” she said. “But we have to keep going.”
The scheme is being delivered by investment giant Legal & General
An artist’s impression of the proposed L&G development at an area known as Temple Island, south of Temple Meads station in Bristol(Image: L&G)
Plans to transform a derelict former diesel depot near Temple Meads station in Bristol into a vibrant urban quarter have been given the green light. Bristol City Council unanimously approved the hybrid application for the regeneration of the area known as ‘Temple Island’ on Wednesday, April 1.
The scheme, which is being delivered by investment firm Legal and General (L&G), is for up to 520 properties, new offices, public spaces and a 160-room hotel.
L&G said the approval was “a critical step” towards unlocking a long‑vacant brownfield site.
“As a leading pensions provider, we are committed to long‑term investment in infrastructure and housing to help shape a better built environment for the communities where our savers live,” the company said in a statement.
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“Our track record in delivering major regeneration schemes in cities such as Newcastle, Cardiff and Sheffield, together with our strong public sector partnerships, enables us to drive forward place‑based developments that support local needs whilst delivering for pension savers across the country.
“The scheme comes forward at a time when development viability across the city is under pressure, and we welcome the Local Planning Authority’s recognition of the substantial benefits Temple Island will deliver: supporting new jobs, enhancing the public realm, and contributing to the wider regeneration of Temple Quarter.”
The Temple Island site sits between the Bath Road and the River Avon. According to L&G, the proposals are designed to be largely ‘car free’.
L&G said entrances from the Bath Road will create new connections between south Bristol and Bristol Temple Meads station, the new University of Bristol campus and the wider Temple Quarter area.
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The connection on the north side of the Bath Road will include stairs and a lift, while on the south side an existing access road will lead people down and under the road into the site. A footbridge will link the site with Temple Quarter and St Philip’s Marsh while ‘Brock’s Bridge’ will be the only route for vehicles into the site, but people will be able to walk and cycle across the bridge.
“We look forward to continuing our partnership with the public sector to bring new homes, jobs, and opportunities to Bristol, and to helping establish a thriving new community on Temple Island,” L&G added.
British Business Bank has invested $20 million into 9fin as part of a $170 million Series C funding round, propelling the London-based firm to unicorn status and reinforcing the UK’s position as a global fintech hub.
The round was led by HarbourVest, with participation from Canada Pension Plan Investment Board and existing backers including Redalpine, Highland Europe, Spark Capital and Seedcamp. The British Business Bank’s investment was made in partnership with Redalpine, reflecting its growing focus on supporting later-stage scale-ups.
Founded in 2016, 9fin has built an AI-native intelligence platform designed for professionals operating in credit and debt markets, one of the largest asset classes globally.
The platform aggregates and analyses data that is traditionally fragmented across emails, PDFs and private data rooms, providing users with real-time insights, analytics and document extraction tools. This enables banks, asset managers, law firms and advisors to identify opportunities and manage risk more efficiently within a single interface.
With more than 300 institutional clients worldwide and multiple years of 100 per cent annual recurring revenue growth, 9fin has established itself as a fast-scaling player in financial data and analytics.
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The new funding will be used to further develop 9fin’s AI capabilities, expand its proprietary dataset and accelerate growth in the United States, a key market for credit and leveraged finance activity.
Chief executive Steven Hunter said the company’s ambition is to become an essential platform for credit professionals.
“AI will redefine credit markets, but only if it is powered by proprietary data and embedded into how professionals actually work,” he said. “Our goal is to build the only platform they need.”
The investment marks another milestone for the British Business Bank’s equity programmes, which have now supported 27 UK unicorns, representing around 64 per cent of the country’s current billion-dollar startups.
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Leandros Kalisperas, the bank’s chief investment officer, said increasing access to late-stage capital is critical to ensuring UK companies can scale while maintaining a domestic base.
“Investments like this help our most innovative businesses realise their commercial potential and compete globally,” he said.
George Mills, investment director at the bank, added that 9fin exemplifies the strength of UK fintech, particularly in applying AI to complex financial markets.
The deal highlights the continued momentum in the UK fintech sector, which remains one of the most dynamic in Europe.
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By combining artificial intelligence with large-scale financial datasets, companies like 9fin are reshaping how markets operate, improving transparency, efficiency and decision-making across the credit landscape.
As global demand for data-driven financial tools grows, platforms that can integrate AI with high-quality proprietary data are expected to play an increasingly central role.
For 9fin, achieving unicorn status marks a significant step, but the focus now shifts to scaling internationally and maintaining its growth trajectory in a competitive and rapidly evolving market.
For the UK, the investment underscores the importance of sustained support for high-growth technology firms, ensuring that innovation developed domestically can translate into global success.
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Amy Ingham
Amy is a newly qualified journalist specialising in business journalism at Business Matters with responsibility for news content for what is now the UK’s largest print and online source of current business news.
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