Germany-based online lending platform Kreditech has raised €10m ($10.5m) in equity funding from e-commerce firm Rakuten to build more partnerships for its business.
Founded in 2012, Kreditech offers credit to consumers with little or no credit history, providing consumer loans, a digital wallet and an online personal finance manager to help customers manage their credit score and spending.
Kreditech launched its lending-as-a-service business in the spring of this year to offer loans to consumers who lack access to traditional banking. Partners that use the service include PayU, the fintech and e-payments division of media and e-commerce company Naspers.
Kreditech also offers credit as a service, allowing partners to integrate credit products as payment methods or funding sources.
Michael Piechalak, principal of the Rakuten’s $100m FinTech Fund, which invests in early to mid-stage fintech startups, will join Kreditech’s board as an observer in conjunction with Rakuten’s investment.
Kreditech collected a total of €92.5m for its series C round, raising a €10m extension from multilateral aid agency International Finance Corporation (IFC), a division of World Bank Group, in April 2016 after reaching the round’s second close at €82.5m in September 2015.
Amadeus Capital Partners, Värde Partners, HPE Growth Capital and Blumberg Capital were among the participants in the round, which was led by investment firm JC Flowers. Kreditech raised an initial €37.5m in a first tranche that included angel investor Peter Thiel in July 2015.
Oskar Mielczarek de la Miel, managing partner of the Rakuten FinTech Fund, said: “Kreditech is already widely recognised for its distinctive big-data-driven credit model and tech expertise. Rakuten’s investment will allow them to further expand their unique offering.”