Creamfinance Closes €1m Investment Round

By Guglielmo de Stefano on 14th March 2016

P2P/Marketplace Lending

VC Fund Flint Capital invests €1m in Creamfinance, making it the largest institutional investor.

Creamfinance Closes €1m Investment Round

 

Warsaw-based consumer financial services provider Creamfinance has closed a €1m investment round led by Flint Capital, an international Venture Capital fund that invests across the United States, Israel and Europe. The new funds will be employed by Creamfinance to expand its operations into the Scandinavian market.

 

Two years ago, Flint Capital invested €5m in the platform. On this occasion, the VC fund has partially bought out an Angel Investor and this transaction makes it the largest institutional investor in Creamfinance.

 

Founded in 2010, Creamfinance is the parent company of CreditOn, LendOn, and CreditOne - consumer credit platforms that operate in Latvia, Czech Republic, Poland, Georgia and Slovakia. Creamfinance uses data to quickly evaluate, score and make short-term loans to its customers. It also uses its proprietary technology to automate as much of its process as possible and to speed up the lending process.

 

Andrew Gershfeld, partner at Flint Capital, commented:

 

“We are happy to double bet on the Creamfinance team that we take as one of the most efficient on this market. This deal indicates our true confidence in the company's continuous progress and belief in the expansion to the Scandinavian markets. The deal corresponds with Flint Capital strategy of accelerating our European Fintech investments”

 

According to Creamfinance, the average loan it disburses is for €209.5 at an average term length of 28 days. Moreover, while 31% of first-time loans are approved, 88% of subsequent loans are approved. The 25-to-33-year-old demographic is Creamfinance’s biggest customer group (31%), followed by the 25 and under (22%).

 

Matiss Ansviesulis, the CEO of Creamfinance, added:

 

"The partnership with Flint Capital positions Creamfinance for sustained growth and continued expansion. We value relationship with Flint Capital and are thrilled to see a continuous interest in our business, which helps the company achieve its growth potential”.

 

According to the Liberum AltFi Volume Index (Continental Europe), the European marketplace lending space delivered Y-o-Y growth in excess of 100% in 2015. A significant measure of this growth has been contributed by the Baltic States platforms, including the likes of Mintos, Bondora, Investly and TWINO.

 

Looking to the year ahead, AltFi Data recently used historic data to project the likely annual loan origination volumes of the many European platforms in 2016. The Baltic States lenders stand out from the long list of platforms. Mintos (which is affiliated with Creamfinance) is expect to move from €12m to €40m (233%) by the close of 2016; TWINO from €3m to €20m (567%); and Bondora from €20m to €48m (140%). 

Comments

AltFi London Summit 2019

The UK's oldest and best-loved conference for fintech and alternative finance insiders returns for its sixth iteration at etc.venues. We'll showcase the best of the UK's digital banking, online lending and digital wealth sectors through a series of uniquely in-depth discussions and presentations. Open Banking will be in full flight, just over a year on from its launch, and will be a central theme at the event.

18th March 2019


Companies in this Article:

Brismo
Bondora
TWINO
Creamfinance
Investly
Liberum
Mintos

People in this Article:

More like this:

Ratesetter tops £3bn loans milestone

15th January 2019
Roger Baird

Natwest rolls out Esme loans to SME customers

17th January 2019
Daniel Lanyon

Fintech lender Creditshelf hires IT boss

15th January 2019
Roger Baird

Nucleus business loans break £1bn barrier

17th January 2019
Roger Baird