Kreditech (IFC-37519)

Regions
  • World
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Active
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
C
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jan 4, 2016
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Kreditech Holding SSL GmbH
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Equity
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 10.80 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported EUR 10.00 million
Converted using 2016-01-04 exchange rate.
Project Cost (USD)
$ 108.02 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported EUR 100.00 million
Converted using 2016-01-04 exchange rate.
Primary Source

Original disclosure @ IFC website

Updated in EWS Aug 1, 2018

Disclosed by Bank Dec 3, 2015

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

This project finances an equity investment in Kreditech Holding SSL GmbH, an online, technology-enabled consumer lending platform based in Hamburg, Germany that uses predictive data analytics and a machine learning algorithm to assess the creditworthiness of consumers without an existing credit bureau score, in order to extend credit to those who do not have access to traditional financing options.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Kreditech is seeking to raise up to EUR 100 million of equity capital to fund operations and expansion into other emerging market countries. IFC is considering an investment of up to EUR 10 million in the Series C equity round.The project sponsors are Alexander Graubner-Mueller (Co-Founder & CEO) and Sebastian Diemer (Co-Founder), who co-founded the Company in 2012. Alexander was originally the Company’s CTO. He is a software engineer, with previous experience as CTO of Rocket Internet’s South East Asia operations. Prior to that, he was an algorithm-trading and financial engineer at LGT Capital. Sebastian is the ex-CEO of Kreditech, who continues to hold a Board Observer seat, but no longer has an active management role. Additional key shareholders include J.C. Flowers, a New-York headquartered financial services focused private equity fund; Varde, a Minnesota headquartered global alternative investment firm; Blumberg Capital, a San Francisco headquartered venture capital fund focused on early-stage opportunities in the technology sector; and HPE Growth Capital, an Amsterdam headquartered growth private equity fund focused on the technology sector.

Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Kreditech is an online, technology-enabled consumer lending platform based in Hamburg, Germany. The Company uses predictive data analytics and a machine learning algorithm to assess the creditworthiness of consumers without an existing credit bureau score, in order to extend credit to those who do not have access to traditional financing options. Kreditech currently extends loans to consumers primarily in Poland, Spain, Czech Republic, Russia, and Mexico.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Kai Schmitz
Principal Investment Officer
International Finance Corporation
The World Bank Group
mailto:kschmitz@ifc.org http://www.ifc.org

ACCOUNTABILITY MECHANISM OF IFC
The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/

How it works

How it works