FinTech firm Spotcap, based in Berlin and founded and backed by Rocket International, focuses on small business lending and has just grabbed €31.5 million ($34.4 million) in its latest funding round.
TechCrunch reported on Tuesday (Feb. 2) that the round is being led by Finstar Financial Group, a Russian private equity firm, alongside previous investor Holtzbrinck Investors.
This is the third round of funding in 18 months, and Spotcap has raised €18 million ($19.6 million) previously.
The company said the newest funding will be used to push international expansion; the firm currently has presence in Australia, Spain and the Netherlands. TechCrunch also said that the funding will be earmarked for expanding the platform and offering up more liquidity through lending.
[bctt tweet="Spotcap's newest funding will be used to push international expansion."]
The firm works with businesses of online and physical presence across several industries. The company's lending can serve, for example, retailers without enough cash flow to build inventory ahead of selling seasons tied to holidays.
Spotcap said it offers up automation in the process, bringing a credit scoring mechanism to a firm's accounting software and bank account, and utilizes thousands of other data points to determine creditworthiness. Loans are usually extended across 12 months, said TechCrunch.
In an interview with TechCrunch, CEO Toby Triebel said that in areas such as Spain, eCommerce is not as prevalent as seen in other nations such as the United Kingdom. And, even with the cash in hand, the executive told TechCrunch, Europe is somewhat behind other regions globally in terms of eCommerce, leaving room for growth. That would imply opportunity for Spotcap, even with the acknowledgement of other startups targeting the same markets.