Kreditech (IFC-37519)

Regions
  • World
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
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Jan 4, 2016
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Kreditech Holding SSL GmbH
The holder of the loan, grant, or other investment.
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, etc.
Investment Amount (USD)
$ 10.80 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. 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, converted to USD$. Please see updated project documentation 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

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
  • International Finance Corporation (IFC)

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.

Private Actors

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

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

ACCOUNTABILITY MECHANISM OF IFC
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