Consumer finance technology group Kreditech Group has secured a USD200 million credit facility from Victory Park Capital, an asset management firm focused on middle market debt and equity investments based in the United States.
The investment reflects investors’ confidence in its big data credit-scoring technology and its data platform to serve the estimated 4.0 billion unbanked and underbanked individuals worldwide. It is the largest credit facility in B2C fintech outside the US to date.
The funding strengthens Kreditech’s position as a leader in the consumer finance technology market. The Group will use the new financing to continue its rapid growth at 60 to 80 percent per quarter. With a focus on the geographic rollout and expansion of its product portfolio, Kreditech expects the financing to deliver scale, lower cost and provide flexibility. The Group’s unique technology uses big data gathered from 20,000 data points to feed its proprietary, self-learning, credit-scoring algorithm.
“We look forward to helping support the company’s future growth and success in the consumer finance technology space,” says Gordon Watson, principal at Victory Park Capital. “Kreditech’s credit-scoring model is impressive and has the ability to identify target customers in any market, even underbanked customers in emerging markets.”
“This record transaction is our next step toward becoming the market-leading digital consumer lender. It helps us address the growing demand for loans of longer durations at fair prices,” says Rene Griemens, chief financial officer of Kreditech. “Setting the stage for our upcoming Series C financing round, the credit facility will reaccelerate our growth well beyond the 500 percent per year mark.”
