Rocket Internet-backed consumer and SME loans marketplace Lendico has raised a further €20m in equity funding.
The fresh round of capital has been contributed by existing investors Rocket Internet, Access Industries, HV Holtzbrinck Ventures and a new investor – that some whispers suggest might be London-based Arrowgrass Capital. The money will be used for bolstering the team, further developing the platform's proprietary technological systems and, interestingly, to spur on its plan for international growth.
AltFi readers will know that Lendico repositioned the business in March, shrinking the size of its retail-facing global operations. The platform curtailed private investment opportunities in Spain, Poland and South Africa – due to a lack of quality loan requests. The move marked a general shift towards a more institution-oriented method of funding loans. Lendico raised €100 in debt capital from a number of investment firms, including two unnamed German banks. We were told by platform representatives that sufficient borrower supply existed to match that institutional demand, with Lendico having fielded close to €1 billion in loan requests since its inception in December 2013. The alternative lending firm recently outlined its key markets in the short term as Austria, Holland and, of course, Germany.
However, that this latest bout of funding will in part be committed to fuelling the platform’s international expansion plans suggests that they are far from forgotten. The comments of Sven Achter, Partner at backer HV Holtzbrinck Ventures, reaffirm that notion:
"We look forward to continue supporting Lendico on its growth track on the way to improve traditional lending and to disrupt the structure of the global lending markets."
You can read Dominik Steinkühler’s thoughts on “going global”, amongst other things, by revisiting our interview from February with the Lendico boss. In relation to the €20m fundraise, Dr. Steinkühler commented:
"We have won another experienced strategic partner as an additional investor in Lendico. Together we share the belief that there is no need for banks when it comes to lending money to business and individuals."
"Solid funding is an important strategic advantage in a fast growing market environment. Lendico will now use the momentum and strengthen its position as a leading international online lending marketplace. Alongside our investors, we will continue to work on eradicating the dominance of banks and providing a better way for private individuals and especially for businesses to obtain loans."
AltFi is returning to Amsterdam for its second annual Summit in the city. The inaugural event last year was a roaring success, with key figures from across Continental Europe's alternative finance and digital banking sectors highlighted. These included Jeroen Broekema, managing director of Funding Circle Netherlands, and Mieke van Engelen, head of innovative partnerships at ABN AMRO's standalone lending platform, New10.