– GERMANY, Hamburg – Kreditech, the Germany-based online direct lender and Point-of-Sale financing provider, has raised EUR 20 million in its latest equity financing round co-led by Runa Capital, a global technology venture capital firm and German private investors, with participation from long-time existing shareholders, HPE Growth and Amadeus Capital Partners.
“We are excited to be partnering with Kreditech as it continues on its path to becoming a global leader in digital near-prime lending. We believe that access to credit will continue to be improved through innovation and we see Kreditech as the emerging leader in this space, especially considering its presence in multiple fast-growing markets around the world,” said Andre Bliznyuk, General Partner at Runa Capital. Runa Capital’s extensive experience and knowledge of the technology industry and of scaling such businesses is an ideal fit for Kreditech’s profile.
Kreditech is ready to scale globally in the near-prime customer segment – declares David Chan, Kreditech CEO. The company 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.
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.
“We are on track to realize our vision, which is to be one of the leading technology-enabled consumer-lending companies; a fintech platform of choice for both individuals and POS and e-commerce partners. With a new strategy in place, a solid capital base and our highly motivated and experienced team, we are perfectly positioned to achieve our goals”, says 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. In outlining the company’s current situation and its future plans, David Chan explains: “We have a well-established presence in Poland, with strategic partnerships in a very dynamically growing e-commerce market. In Spain, we are in a very strong position as a recognized consumer lending brand, and we are growing rapidly in the near-prime market. In Russia, we are a leading online lender, locally self-funded, and targeting expansion into installment loans”.
“I am really excited about our growth plans in India. We hold a first-of-its-kind digital NBFC license in a large and fast-growing market. We have been successful in finding our niche and have established the right proof of concept. Now it’s time to scale up while a key target customer segment remains unaddressed by the competition”, says David Chan.
In October 2019, Kreditech will publish its financial statement for 2018. As David Chan underlines, the results will show the positive impact of the new company strategy on its trajectory and overall performance. “I am proud to say that we are on track to reach our target for the profitability of the company. Our platform is designed to facilitate rapid, profitable growth”.
Tim van Delden, the co-founder of HPE Growth, commented: “We are keen to support Kreditech. We have great trust in the new management team that Kreditech put in place in 2018. Kreditech’s track record over the last eighteen months, together with its business focus, strategy refinement and path to profitability has been truly impressive. For these reasons, HPE is convinced that Kreditech has the right management team to scale the business into the near-prime market. Kreditech’s core pillars of success remain the same – it is a technology and a data-driven company that is able to use machine learning scoring models to make credit decisions in real-time and with greater accuracy.”
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.
Kreditech is an international company that has its headquarters in Hamburg, Germany. The company currently employs more than 300 people across seven countries and is developing regional centers of excellence and tech centers in Poland, Romania and Thailand. Kreditech lends to customers in India, Poland, Russia and Spain.
For more information: https://www.kreditech.com
About HPE Growth
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: https://hpegrowth.com
About Runa Capital
Runa Capital is an international venture capital firm headquartered in Palo Alto, California that invests in deep tech, 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.
For more information: https://www.runacap.com
About Amadeus Capital Partner
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 cybersecurity 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.
For more information: https://www.amadeuscapital.com
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