Kreditech, a leading technology group for digital consumer credit using machine-learning based underwriting, has closed a EUR 110 million investment from global online payment service provider PayU. The landmark investment is the largest ever equity investment in a German fintech company and builds on a successful 12-month pilot programme in Poland.
As part of the deal, Kreditech and PayU agree a global partnership to deliver a joint proposition for Point of Sale Finance. The agreement combines PayU’s strong international footprint with Kreditech’s unique technology to bring innovative credit services to underbanked markets around the world. Kreditech will expand its Lending as a Service (LaaS) offering and deliver its unique AI and machine-learning credit underwriting and loan management technology to PayU’s 300,000-strong network of merchants.
The announcement follows a successful pilot programme managed by Kreditech and PayU, offering Polish consumers improved access to credit in a real-time online process. The pilot programme issued more than EUR 10 million in credit.
Through this major growth financing, PayU has acquired a significant minority stake in Kreditech, joining existing prominent fintech investors including JC Flowers, Varde, Blumberg Capital, HPE, Peter Thiel, Rakuten and the World Bank’s IFC. Additional transaction parameters were not disclosed.
Kreditech’s and PayU’s non-exclusive partnership is the first such strategic cooperation pact between a payment service provider and a technology driven consumer finance company. Retailers benefit from increased sales potential
Kreditech’s Lending as a Service product line is an API-based solution which enables partners to offer tailor-made consumer finance products to their customers build on top of Kreditech’s technology and machine-learning based underwriting. Partners gain access to the complete Kreditech consumer lending value chain including loan application management, credit risk management, know your customer principles (KYC), e-signature, loan refinancing, loan processing and servicing, collections as well as customer service.
PayU uses its payments heritage and expertise to deliver financial services in emerging markets. Our local operations in Asia, Central and Eastern Europe, Latin America, the Middle East and Africa enable us to be experts in these countries and provide the best solutions for the local market. PayU is the leading online payment service provider in 16 high growth markets, dedicated to creating a fast, simple and efficient payment process for merchants and buyers. Our 250+ payment methods and PCI certified platforms are designed to meet every consumer’s needs.
The markets in which PayU operates represent a potential consumer base of nearly 2.3 billion people and a huge growth potential for merchants. PayU has more than 1,800 payment specialists based in these local markets supporting PayU’s 300,000+ merchants and the millions of consumers making online payments.
Source: Kreditech Press Release