The round was led by J.C. Flowers Co. LLC, a leading private investment firm dedicated to investing in the financial services industry globally. Peter Thiel and Amadeus Capital Partners (Amadeus) invested earlier this year in a bridge loan that has now fully converted into Series C equity. Existing shareholders Värde Partners, HPE Growth Capital and Blumberg Capital also participated in the round. The company is in advanced discussions for a final closing that could increase the Series C round to over 100 million euro.
World-Class Investors Support Young Hamburg Firm
“We are excited to bring these world-class investors on board who will support us in strengthening our integrated financial services platform, bringing us closer to our vision of becoming the 'digital bank for the underbanked’,” said Kreditech’s Co-Founder and CEO Sebastian Diemer. “We are a technology company, but also a provider of consumer financial services, and we are fortunate to have a sophisticated shareholder group whose experience and network spans both areas.”
Business Model Confirmed
“We view the addition of J.C. Flowers, Peter Thiel and Amadeus as a major validation of our business model. They are important partners in building our capital markets story,” added Kreditech’s CFO Rene Griemens. “The company has now raised cumulative equity and debt funds of more than 300 million euro, of which 160 million euro are unused debt facilities available to finance further growth.”
New Board Member
Loren Felsman of J.C. Flowers, who will join the company’s board, said, “There are people without access to fair and affordable credit in every market we have analyzed, and technology is enabling new and better ways of offering credit to these customers. Kreditech has developed a remarkably sophisticated approach to real-time consumer banking, and focuses on markets that are relatively less well-served by traditional credit bureaus and financial services providers. Most lenders, including those built on modern technology, may not crack these markets for years.”
“We are very impressed by Kreditech’s speed of execution; its business model, in combination with its innovative scoring and underwriting technologies, has enormous potential to overtake traditional banking models in the future,” said Andrea Traversone, Partner of Amadeus.
Kreditech use big data, unique proprietary algorithms and automated workflows to build a ‘digital bank’ for everyone”. Based on 20,000 dynamic data points, Kreditech’s technology enables to target customers worldwide with better services and custom-tailored financial products through the group’s subsidiary companies. The data-driven technology offers highest degree of convenience through full online processes, making paperwork and manual banking processes redundant.
Jefferies and Berenberg acted as financial advisors on the transaction.
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