Hamburg, Germany – (COMMERCIAL THREAD) – Kreditech, one of the leading consumer credit technology companies, has raised € 82.5 million in Series C financing to fuel business growth. The round was led by JC Flowers & Co. LLC, a leading private equity firm dedicated to investing in the financial services industry on a global basis. Peter Thiel and Amadeus Capital Partners (Amadeus) invested earlier this year in a bridge loan that is now fully converted into Series C shares. Existing shareholders Värde Partners, HPE Growth Capital and Blumberg Capital also participated in the round. The company is in advanced talks for a final close that could take the Series C round to more than 100 million euros.
“We are delighted to welcome these world-class investors who will help us strengthen our integrated financial services platform, moving us closer to our vision of becoming the ‘digital bank for the underbanked’,” said the co-founder and CEO of Kreditech. Sébastien Diemer. “We are a technology company, but also a provider of financial services to consumers, and we are fortunate to have a sophisticated group of shareholders whose experience and network span both areas.”
“We see the addition of JC Flowers, Peter Thiel and Amadeus as a major validation of our business model. They are important partners in building our history in the capital markets, ”added Kreditech CFO Rene Griemens. “The company has now raised cumulative equity and debt funds in excess of € 300 million, of which € 160 million is unused debt facilities available to fund further growth.”
Loren Felsman of JC Flowers, who will join the company’s board of directors, said: “There are people who do not have access to fair and affordable credit in all of the markets we have analyzed, and the technology enables new and better ways to provide credit to these customers. Kreditech has developed a remarkably sophisticated approach to real-time consumer banking and focuses on markets relatively less well served by traditional credit bureaus and financial service providers. Most lenders, including those built on modern technology, may not enter these markets for years. ”
“We are very impressed with Kreditech’s speed of execution; its business model, combined with its innovative rating and underwriting technologies, has enormous potential to surpass traditional banking models in the future, ”said Andrea Traversone, Amadeus partner.
Jefferies and Berenberg acted as financial advisers on the transaction.
Kreditech Group is a technology company that offers a range of tailor-made financial services with a focus on underbanked consumers around the world. Kreditech uses big data, proprietary algorithms and automated workflows to acquire, identify and underwrite customers in seconds. Automated processes combined with self-learning algorithms ensure fast and convenient customer service, minimizing costs and human errors while continuously improving by incorporating new customer data. Since its inception, Kreditech has recorded over two million individual loan requests, using up to 20,000 data points per request. Kreditech’s global subsidiaries offer products ranging from installment loans and personalized microloans to payments and other financial services. Kreditech’s Monedo brand offers an integrated suite of financial products, including a digital wallet and personal finance manager designed to help clients manage their credit rating and plan their spending. Founded in 2012 by Sebastian Diemer (CEO) and Alexander Graubner-Müller (CTO), Kreditech Group has a team of over 200 passionate employees from over 40 nationalities.
About JC Flowers & Co.
JC Flowers is a leading private investment firm dedicated to global investment in the financial services industry. Founded in 1998, the company has invested more than $ 14 billion in capital in 41 holding companies in 15 countries across a range of industry sub-sectors, including banking, insurance and reinsurance, securities companies, specialized finance and asset management and services. With approximately $ 8 billion in assets under management, JC Flowers has offices in New York and London.
About Amadeus Capital Partners
Amadeus Capital Partners is a leading technology investor. Since its inception in 1997, the company has raised more than $ 1 billion to invest in and supported over 100 companies in the software, mobile, internet, cybersecurity and medical technology industries. The investment team is global (UK, Sweden, US, India and South Africa), has extensive technology experience and invests in high growth companies at all stages of development, from l initiation and early stage to pre-IPO. Major companies created by Amadeus include CSR (LSE: CSR), a semiconductor company in connectivity, audio, imaging and localization; Solexa, the developer of next-generation genetic analysis systems, merged with Illumina (ILMN) to create the world leader in gene sequencing technology, Octo Telematics, the world leader in insurance telematics services acquired by Renova Group ; and Transmode (ST: TRMO), an optical networking solutions company.