Kreditech, the German online consumer credit lending company, announces that it has made room for two new investors in its equity capital structure.
One of them is long time debt investor Varengold Bank AG who, in parallel to favorably revising its debt investment terms, joins the company’s equity investor group with an equity investment of EUR one million. Varengold is known for its expertise in the field of Marketplace Banking and focus on cooperating with European Fintech companies in particular, credit platforms. Varengold is pleased to build on their existing relationship with Kreditech which has been in place since 2014.
“We are really pleased to further strengthen our positive partnership with Kreditech by joining the company’s cap table as an equity investor”, Lukas Diehl, Head of Varengold Bank’s Marketplace Banking Team stated. The equity investment is not typical for the debt focused Varengold Bank, and Director of Corporate Finance at Kreditech Dana Vogt says “Having Varengold on our cap table makes sense and further aligns our supportive partner, Varengold bank, with Kreditech’s vision for growth”.
Kreditech also successful piloted an Employee Stock Purchase Plan, as part of a vision to further promote high levels of employee engagement in the company’s future prosperity.
These investments are clear endorsements of the company’s new leadership and in Kreditech’s recently announced plans to expand into the near-prime segment. “In 2019, we will expand our existing installment loan product into the near-prime segment in all our key markets of operation”, states David Chan, CEO of Kreditech. “It’s our mission to become the global fintech platform of choice for this segment and we are aiming for €1 billion in revenue by 2025. Varengold’s investment is an important first milestone in building Kreditech’s future.”
Source: Kreditech Press Release