Kreditech Holding SSL GmbH
Kreditech raises 4m USD for international expansion of B2C microloans and roll-out of B2B ‘Scoring as a Service’ products
(DGAP-Media / 18.12.2012 / 10:08) * 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 next year The 2012 founded tech start-up Kreditech (formerly Kredito; www.kreditech.com) attracts further prominent investors: Blumberg Capital and the management of a German investment bank join the list of investors in Kreditech with Point Nine Capital (also participating and increasing their stake). In total Kreditech has raised 4m USD, which, according to CEO and Co-Founder 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' next year. Michael Brehm (ex-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. '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 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 microloans 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 now better than the 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 (www.kreditech.com) 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 microloans (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. End of Media Release --------------------------------------------------------------------- Issuer: Kreditech Holding SSL GmbH Key word(s): Finance 18.12.2012 Dissemination of a Press Release, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- 197285 18.12.2012
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