IFC invests EUR 10m in Kreditech’s digital banking strategy for the underbanked


Hamburg, Germany, 24 March 2016 – Kreditech, a leading technology company for consumer financial services, has raised EUR 10 million from International Finance Corporation (IFC), part of World Bank Group.

Kreditech will invest IFC’s funding primarily into its Monedo platform. The platform provides both credit and digital banking products to underbanked consumers in emerging and developed markets. The company aims to further improve the borrowing conditions for its customers and continue its transition towards lower-interest, sustainable credit products. In the context of the investment, Kreditech and IFC have further developed the company’s vision for financial inclusion, agreeing on clear guidelines for a “Responsible Lending Policy.”

“Most of our customers are not able to obtain credit at traditional banks,” said Alexander Graubner-Müller, CEO and co-founder, Kreditech. “These institutions lack proper credit scoring for this segment and are unable to assess the customer risk. Through Kreditech’s technology we can perform a more precise credit rating to offer credit at fair and risk-weighted conditions. With the new funding, we will continue advancing our scoring technology to continuously improve and expand our product offering.”

“We welcome IFC as a very valuable partner which brings our Series C round to a total volume of Euro 92.7 million,” said Rene Griemens, Chief Financial Officer, Kreditech. “With its strong banking expertise in the developing world, IFC reconfirms our investment hypothesis and will help to roll out our financial inclusion strategy for the underbanked.”

The round was led by J.C. Flowers & Co., Peter Thiel, Amadeus Capital Partners and existing shareholders Värde Partners, Blumberg Capital and HPE Growth Capital.

“We believe in Kreditech and its mission to improve financial freedom for the underbanked by using technology,” said Kai Schmitz, principal investment officer, IFC. “The company has developed a strong approach to improve customer’s credit ratings and help them enter into the financial system. In line with our belief that financial services are key to long-term economic growth, we are happy to reaffirm Kreditech’s business model with our investment.”



About Kreditech
Kreditech Group’s mission is to improve financial freedom for the underbanked by the use of technology. Combining non-traditional data sources and machine learning,  the Company is aiming to provide access to better credit and a higher convenience for digital banking services. The product offerings include consumer loans, a digital wallet and a personal finance manager designed to help customers manage their credit score and plan their spending.  Kreditech also offers a “credit as a service” model, allowing partners to integrate its credit products as payment method or funding source.  Founded in 2012 and headquartered in Hamburg, Germany, Kreditech has processed almost three million loan applications through its subsidiaries. The company is led by CEO and Co-Founder Alexander Graubner-Müller and is financially backed by world-class investors including J.C. Flowers, Peter Thiel, and the Worldbank’s IFC.

About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, IFC uses its capital, expertise, and influence, to create opportunity where it’s needed most. In FY15, IFC’s long-term investments in developing countries rose to nearly $18 billion, helping the private sector play an essential role in the global effort to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org