82.5 million euros for Kreditech and its real-time loan

by bold-lichterman

The amount

Kreditech, a German start-up specializing in online banking services, has just raised 82.5 million euros from JC Flowers & Co, as the main investor. Peter Thiel (an American venture capitalist), Amadeus Capital Partners and the historical investors Värde Partners, HPE Growth Capital and Blumberg Capital also participated in this round table.

However, this fundraising is part of a much larger operation since the company also announces that it is in “advanced discussions” for a final round of funding of 100 million euros. In January, the company had already completed a funding round of $ 200 million.

The concept

Founded in 2012 by Sebastian Diemer and Alexander Graubner, Kreditech is developing a technology to calculate the “credit score”Of an individual, that is to say his ability to repay a loan, and therefore to obtain one. To do this, the start-up has developed algorithms that analyze more than “20,000 points” of data from users (online purchases, social networks, etc.). Thus, Kreditech claims to be able to establish a profile and provide a response in a few seconds to a customer who wishes to obtain a loan, compared to several days for a traditional bank.

With this technology, the company is also developing consumer targeting services in the banking sector, in order to offer personalized financial products and services. “We are a technology company, but also a provider of financial services to consumers, and we are fortunate to have a group of shareholders whose experience and network span both areas,” says Sebastian Diemer.

The market

The company primarily targets customers who do not have a significant credit history. “People do not have access to fair and affordable credit in the markets we have analyzed, and technology offers better ways of delivering credit,” says Loren Felsman, JC Flowers. “Kreditech has developed a real-time retail banking approach (…), and focuses on markets that are relatively less well served by traditional credit and financial service providers.”

Founders: Sebastian Diemer and Alexander Graubner

Creation: 2012

Market : FinTech, credit scoring in real time

Funding: $ 300 million in debt and capital raised (September 2015)

Indirect competitors: KreditKarma (United States)