Microloan and financing company Kreditech has closed a $40 million Series B funding round, the largest ever for a German financial services tech company. The round is also one of Germany’s largest for 2014. Värde Partners led the round and was joined by two previous investors, Blumberg Capital and Point Nine Capital.
Kreditech, according to its own internal reporting, has approved over 1.5 million loans in just over a year and a half. The service generates a credit score, which it them markets to retailers. The data source for the score is social networks and previous eCommerce history, reports TechCrunch. This focus allows the company to move more quickly into developing markets where more traditional channel may be lacking when evaluating credit worthiness.
The new funding round will go toward expanding into new markets and developing the product offerings more fully.
Currently, Kreditech operates in Poland, Spain, Czech Republic, Russia, Mexico, Australia and Peru. It plans to expand into Dominican Republic, Romania and Brazil between now and 2015.
Between 2012 and 2013 it raised $25M funding. In January this year the company secured $15 million in debt financing from Kreos Capital.
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