Kreditech is ready to scale globally in the near-prime customer segment – declares David Chan, Kreditech CEO. The funds obtained during the latest round of equity financing will be utilized to scale Kreditech’s business in its existing markets.
The Germany-based online direct lender and Point-of-Sale (POS) financing provider estimates its global target market at ca. EUR 300 bn in consumer credit issuance. It aims to reach EUR 1 bn in revenue by 2025, which will be driven by growth in existing markets where Kreditech is present, as well as expansion into new geographies. Kreditech currently operates in India, Poland, Russia and Spain, and serves over one million customers. The company has raised EUR 20 million in its latest equity financing round.
Kreditech combines market-leading tech capabilities and data science, with sound insight into consumer borrowing needs and extensive experience in POS and e-commerce partnerships. Since 2018, the company has been focused on scaling its near-prime lending operations and driving toward profitability. With well-established and growing operations in Poland, Spain and Russia, Kreditech’s near-term focus will be on rapidly scaling its business in India. The company also has plans to further expand in other major consumer lending markets in the coming years.
The cornerstone of Kreditech’s operations is a unique, differentiated, end-to-end fully automated underwriting process that combines alternative data sources with machine learning. This process enables a seamless customer experience based on a dynamic application process, near-instant credit risk assessment and smart, personalized offerings. These features mean that Kreditech is able to effectively attract and serve customers with a variety of different risk profiles, thus enabling financial inclusion, while positioning Kreditech at the forefront of development in artificial and decision intelligence.
As a tech-based lender, Kreditech has developed an agile-driven, low-cost platform architecture that facilitates rapid partner onboarding, as well as lean, flexible, rapid scalability into new markets. As a result, Kreditech has been recognized for its ability to build strong partnerships with e-commerce and e-payments organizations, and for its ability to expand its direct lending through the Monedo brand globally.
The recent round of equity financing was co-led by Runa Capital, a global technology venture capital firm, and a German private investor, with participation from long-time existing shareholders, HPE Growth and Amadeus Capital Partners. A number of FinTech angel investors were also involved.
Kreditech’s vision is to be the global leader in technology-enabled consumer lending. Combining non-traditional data sources and machine learning, the company provides access to better credit and more convenience for digital lending. The product offerings include a variety of consumer loans, as well as “Lending as a Service”, allowing partners to integrate Kreditech’s credit products via an API into their own platform and services. Founded in 2012 and headquartered in Hamburg, Germany, Kreditech operates in India, Poland, Russia and Spain, with supporting teams in Romania and Thailand. Find out more at: www.kreditech.com.
HPE Growth, established in 2010, is a leading European investment firm focused on expansion/growth capital investments in technology companies throughout Northwestern Europe. HPE invests in high-growth software, internet-enabled, mobile, fintech and healthtech businesses that have the option to further leverage their proven technology to become a global category leader. By bringing in additional equity and active support, HPE acts as a catalyst to expansion and enables portfolio companies, such as Kreditech, AEVI, Tiqets, Uberall, eGym, Zava and PPRO, to execute on their vision of securing market leadership. For more information about HPE Growth, please visit: www.hpegrowth.com.
Runa Capital is an international venture capital firm headquartered in Palo Alto, California that invests in deep tech (AI, machine learning, middleware, open source, etc), cloud business software, fintech, edutech and digital health startups on early stages. From 2010 through 2019 Runa Capital raised 3 funds and invested in over 60 companies in Europe and North America including Nginx, MariaDB, Zopa, Brainly, drchrono, Smava and Mambu. As of July 2019 the firm had over 340 million dollars under management in 3 funds. Find out more at: www.runacap.com.
Amadeus Capital Partners is a global technology investor. Since 1997, the firm has raised over $1bn in venture and growth capital and supported 150 companies. Our experienced team of investors and entrepreneurs shares a passion for the transformative power of technology. Pioneering businesses we’ve backed include cyber security vendor ForeScout (NASDAQ: FSCT); Graphcore, innovators in intelligent microprocessors; IVF genetic testing company Igenomix; IndiaMART, the B2B online marketplace (NSE: INDIAMART); payments platform iyzico; and speech recognition company VocalIQ (acquired by Apple). Find out more at: www.amadeuscapital.com and TT @AmadeusCapital.
Source: H+K Strategies [for access to the full press release contact sebastian.kopyt@hkstrategies.com]
