German credit rating startup Kreditech bags $15M in debt funding
Kreditech has secured $15 million in debt funding from Kreos Capital. The German credit and and loans startup wants to become "The Amazon for Consumer Finance," wrote TechCrunch.
The funding comes after the Hamburg startup initially received a loan of $5 million in September last year. The latest financing will be used for the firm's lending activities in Spain, Poland, Russia, Mexico, and Czech Republic. Kreditech will also expand to Australia, Peru, and Brazil in 2014. In 2012, the company raised $4 million in venture capital, the report detailed.
Founded by Sebastian Diemer, Felix Haas, and Alexander Graubner-Muller, Kreditech offers a micro-loans product for consumers and a credit rating service for business clients. The startup claims that its credit scoring service processes more than 8,000 data points in real time to produce a consumer's credit score which is then sold to retailers, the report explained.
The company says it does not need an external credit bureau data because they use globally available information source to identify, detect fraud, and make scoring decisions, the report added.
From short-term microloans, Kreditech is presently diversifying to consumer-focused finance offerings. These products include unsecured installment loans and credit cards which will be launched in the near future, TechCrunch reported.