Das Fintech Kreditech in Hamburg © Kreditech Holding SSL GmbH

Hamburg-based Kreditech expanding to India

Germany's biggest fintech to launch microloans and instalment credits in India

The Hamburg-based start-up Kreditech is to launch on India’s market after securing a record investment from PayU, the fintech and e-payments division of Naspers, a global internet and entertainment group. “The market holds huge potential for us,” Alexander Graubner-Müller, CEO of Kreditech, told Hamburg News. Kreditech provides microloans and instalment credits to integrate the “underbanked” who are usually rejected by mainstream banks.

Big data and algorithms

“We have set ourselves the goal of promoting consumers financial independence with the help of technology. By using alternative data and self-learning algorithms, we can give consumers, whose credit history is difficult for banks to gauge, access to loans. We call that ‘financial freedom for the underbanked through technology,’” said Graubner-Müller. PayU already operates on India’s market and offers its clients via Kreditech instalment credits or purchase on account with interest options e.g. in online shops. The start-up takes over the default risk and payment processing.

Record investment for Kreditech

PayU invested EUR 110 million in Kreditech in May – the highest amount ever invested in a German fintech. According to a study by the auditing firm KPMG and H2 Ventures, Kreditech now ranks seventh among the 50 leading financial start-ups worldwide.

Hamburg as an anchor

Founded by Sebastian Diemer and Alexander Graubner-Müller in 2012, Kreditech also provides B2B solutions. Subsidiaries of the Kreditech group work in five major markets, Spain, Poland, Czech Republic, Russia and Mexico and the company is planning more expansion measures. “However, we are concentrating on setting up a successful business in India for the moment,” said Graubner-Müller and stressed, “Hamburg is and remains our main location. The Hanseastic city is ideally suited for recruiting international talents.”

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