The 2012 founded tech start-up Kreditech (formerly Kredito) has attracted further investors with Blumberg Capital and the management of a German investment bank joining existing investor Point Nine Capital, which has decided to increase its stake.
Michael Brehm (ex-studivz), Heiko Hubertz (founder Bigpoint), Felix Haas (founder amiando), Stefan Glaenzer, Greycorp, YoungBrains, Digital Pioneers and H2 Investments invested in Kreditech earlier in 2012.
In total Kreditech has raised USD4m which, according to chief executive and co-founder Sebastian Diemer, will be sufficient to scale the B2C business to break-even in Q1 2013. In addition, Kreditech plans the international launch of its B2B product “Scoring as a Service” next year.
“Kreditech has developed an innovative approach to scoring by analysing a much larger amount of online data for credit applications than has been done before,” says Jon Soberg, managing director of Blumberg.
Kreditech developed a self-learning algorithm as well as completely automated workflows that apply machine-learning and big data to credit scoring.
Location data (GPS, micro-geographical), social graph (likes, friends, locations, posts), behavioural analytics (movement and duration on the webpage), people’s e-commerce shopping behaviour and device data (apps installed, operating systems) are just some examples of up to 8,000 data points that are processed in real-time for any single scoring unit. This technology will allow any retailer (e.g. banks, leasing companies, e-commerce stores) to access parts or all of this data through a “Scoring as a Service” global database with minimal technical setup and no contracts or minimum durations.
“We gather important learning about repayment behaviour and validate our data by issuing B2C microloans in different countries and then transfer the technology to our B2B products,” says Alexander Graubner-Müller, chief technology officer and co-founder of Kreditech.
“Kreditech’s defaults are already now better than the industry standard. This shows that the system lives up to its promises. Nevertheless, it is being further optimized every day,” says Pawel Chudzinski of Point Nine Capital. “We are pleased to have invested in this innovative and international company from day one.”