• Blumberg Capital and a German investment bank invest in Kreditech
  • Point Nine Capital also participates and increases its stake
  • Funds will be used for scaling B2C business in Poland and expanding to other (European) markets to break even
  • “Scoring as a Service” database for disruptive, global, online scoring will launch in 2014

Hamburg, 17.12.2012 – The 2012 founded tech start-up Kreditech attracts further prominent investors: Blumberg Capital and the management of a German investment bank join the prominent list of investors in Kreditech with Point Nine Capital (also participating and increasing their stake).  Michael Brehm (founder studivz), Heiko Hubertz (founder Bigpoint), Felix Haas (founder amiando), Stefan Glaenzer, Greycorp, YoungBrains, Digital Pioneers N.V., and H2 Investments GmbH invested in Kreditech earlier in 2012. In total Kreditech has raised 4m USD, which, according to CEO Sebastian Diemer, will be sufficient to scale the B2C business to break-even in Q1 2013. In addition, Kreditech plans the international launch of its B2B product “Scoring as a Service” in 2014.

“Kreditech has developed an innovative approach to scoring by analyzing a much larger amount of online data for credit applications than has been done before”, says Jon Soberg, Managing Director of Blumberg. Kreditech developed a self-learning algorithm as well as completely automated workflows that apply machine-learning and big data to credit scoring. “This scoring system works country- and credit-bureau-independent, leveraging big data scoring layers and enabling lending in places where credit bureaus such as Experian and Transunion are not operating. It gives them a unique cost and technology advantage”, adds Soberg.

Location data (GPS, micro-geographical), social graph (likes, friends, locations, posts), behavioral analytics (movement and duration on the webpage), people’s e-commerce shopping behavior and device data (apps installed, operating systems) are just some examples of up to 8,000 data points that are processed in real-time for any single scoring unit. This technology is used for building up a global database will allow any retailer (e.g. banks, leasing companies, e-commerce stores) to access parts or all of this data through a “Scoring as a Service” global database with minimal technical setup and no contracts or minimum durations. “We gather important learning about repayment behavior and validate our data by issuing B2C online loans in different countries and then transfer the technology to our B2B products”, says Alexander Graubner-Müller, CTO and co-founder of Kreditech.

Kreditech has processed more than 100,000 applications with its platform Kredito24.pl in Poland alone – out of which between 10 and 20 per cent have been accepted at various stages of the model development. For granted applications Kreditech guarantees that the money is with the customer in less than 15 minutes, although it usually arrives in around 2 to 3 minutes.

This is possible thanks to in-house developed systems that score and pay out in a fundamentally innovative way at no variable costs.

“Kreditech’s defaults are already comparable to those of retail banks, which is significantly better than the online loan industry standard. This shows, that the system lives up to its promises. Nevertheless, it is being further optimized every day”, says Pawel Chudzinski of Point Nine Capital. “ We are pleased to have invested in this innovative and international company from day one.”

“We are delighted and proud not only to keep our investors’ trust but also to have gained these new AAA investors. This shows that they, like us, believe in the market potential of scoring fintech and in our abilities in developing innovative technology and executing operations efficiently. We look forward to being a technology leader in the disrupted global scoring market”, concludes Sebastian Diemer.


About Kreditech:

Kreditech  is a real-time scoring technology provider that applies big data analysis to thousands of data points in credit applications over individuals. This technology is applied in B2C markets for issuing online / SMS / facebook online loans (e.g. www.kredito24.pl and www.kredito24.es) in real-time as well as for the establishment of a global “Scoring as a Service” database that provides scoring data without technical integration or contractual obligations to third parties.

Kreditech operates offices in Hamburg, Warsaw, Barcelona and Kharkov and employs 13 professionals from 8 nationalities.


About Blumberg Capital:

Blumberg Capital (www.blumbergcapital.com) is an early-stage venture capital firm focused on investing in innovative and disruptive companies that are changing the service economy. Blumberg Capital has approximately $250 million USD under management. Blumberg has special expertise in financial services and has made several investments in the space, including Credorax, Addepar, and Lenddo, which was funded by Blumberg and Accel, and uses social reputation for issuing loans in emerging markets.


About Point Nine Capital:

Point Nine Capital, the Angel-VC, is a Berlin-based early-stage venture capital firm, primarily investing in Software-as-a-Service (SaaS), marketplace, lead generation and eCommerce startups. The fund and its managers have backed a number of highly successful Internet companies in Germany, Poland and other countries, including inFakt, Brainly, Zendesk, DeliveryHero and DaWanda. More information can be found at www.pointninecap.com.