PayPal Co-Founder Peter Thiel is among the backers of German consumer fintech company Kreditech’s Series C round which was announced this week.
Mr. Thiel’s initial involvement was as a bridge funder earlier this year, where he was joined by Amadeus Capital Partners. Both saw their interest converted into Series C equity.
The Series C was lead by J.C. Flowers & Co. Existing shareholders Värde Partners, HPE Growth Capital and Blumberg Capital also participated in the round.
Kreditech is in advanced discussions for a final closing that could increase the Series C round to over EUR 100 million.
Kreditech’s co-founder and CEO looks forward to the counsel of hands experienced in both technology and finance.
“We are a technology company, but also a provider of consumer financial services, and we are fortunate to have a sophisticated shareholder group whose experience and network spans both areas,” Sebastian Diemer said.
Kreditech CFO Rene Griemens said the company has now raised cumulative equity and debt funds of more than EUR 300 million, with EUR 160 million being unused debt facilities available to finance further growth.
J.C. Flowers’ Loren Felsman said Kredietch’s focus on markets once poorly served combine with solid technology and early to market advantage make them a worthy bet.
“There are people without access to fair and affordable credit in every market we have analyzed, and technology is enabling new and better ways of offering credit to these customers. Kreditech has developed a remarkably sophisticated approach to real-time consumer banking, and focuses on markets that are relatively less well-served by traditional credit bureaus and financial services providers.”
“Most lenders, including those built on modern technology, may not crack these markets for years.”
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