A short update on Smava – the online personal bank loans broker – has raised $16m in equity funding.
Smava is often referred to as a peer-to-peer lender, and indeed the platform was one of the pioneers within the German market. But according to Claus Lehmann of P2P-Banking.com, Smava repositioned in 2012 – becoming a technology-based facilitator of loans, rather than a lender itself.
The redirection appears to be working. The $16m fundraise brings the total amount of equity funding accumulated by Smava to $30m. The latest round was led by Phenomen Ventures, who were joined by existing backers Earlybird and Neuhaus Partners. Phenomen’s past investments include the now-eminent US consumer loans provider Prosper.
Smava’s algorithm based approval process has thus far been responsible for the facilitation of $600m in loans. The platform’s origination volumes have doubled over the past year. Igal Weinstein, a General Partner at Phenomen, will be joining the Smava board.
Alexander Artopé, CEO of Smava, weighed in on the raise:
“This fresh capital enables us to accelerate our business growth as well as to fulfil our vision of offering fully-automated loans to borrowers at best rates in the near future. The funding will also be used to advance smava’s scoring technology, hire the best talent and further fuel growth.”