Kreditech, an AI-based loan startup that targets emerging markets, has raised $22 million in its latest funding round, according to a report.
Based in Hamburg, Germany, the company offers not only loans, but also point-of-sale financing to near-prime borrowers in countries like Russia, India, Poland and Spain.
VC Runa Capital is leading the round. HPE Growth, Amadeus Capital Partners and an unnamed private German investor all participated. Kreditech’s latest valuation was not disclosed, but it was worth around €500 million in its last round of fundraising.
“We are on track to realize our vision, which is to be one of the leading technology-enabled consumer-lending companies; a FinTech platform of choice for both individuals and POS and eCommerce partners. With a new strategy in place, a solid capital base and our highly motivated and experienced team, we are perfectly positioned to achieve our goals,” said David Chan, Kreditech CEO.
Chan said he’s especially excited about growth in India. “We hold a first-of-its-kind digital NBFC (non-banking financial company) license in a large and fast-growing market,” he noted. “We have been successful in finding our niche and have established the right proof of concept. Now it’s time to scale up while a key target customer segment remains unaddressed by the competition.”
Kreditech was started on the premise that AI would be better able to analyze possible borrowers in developing countries and to handle the underwriting. The company said it will clear €1 billion in revenues by 2025.
Andre Bliznyuk, general partner at Runa Capital, said Kreditech is well-positioned to be successful. “We are excited to be partnering with Kreditech as it continues on its path to becoming a global leader in digital near-prime lending. We believe that access to credit will continue to be improved through innovation, and we see Kreditech as the emerging leader in this space, especially considering its presence in multiple fast-growing markets around the world.”