Germany-based fintech company Kreditech has secured EUR 110 million ($119.9 million) funding from global online payment service provider PayU, the company said in a press note.
This is the largest equity investment in a German fintech company through which PayU has pciked up a significant minority stake in Kreditech.
As part of the deal, Kreditech and PayU have entered into a partnership with an aim to increase access to credit services globally. Kreditech will expand its Lending as a Service (LaaS) offering and deliver its unique AI and machine-learning credit underwriting and loan management technology to PayU’s 300,000-strong network of merchants.
“With our substantial investment we deepen our relationship with the industry-leading management team at Kreditech, and help to bring pioneering machine learning and AI technology to the many high growth markets around the world that need better access to financial services. At PayU we believe in the enormous potential of technology to unlock credit and financial services for underserved populations,” said Laurent le Moal, CEO, PayU.
“In the past 12 months, we have become the leading corporate venture capital investor in fintech, investing more than EUR 245 million around the world. This latest investment in Kreditech fits perfectly with this vision,” added Moal.
Hamburg-headquartered Kreditech was founded in 2012. The company’s Lending as a Service product line is an API-based solution which enables partners to offer tailor-made consumer finance products to their customers build on top of Kreditech’s technology and machine-learning based underwriting.
It claims to have processed more than four million loan applications through its subsidiaries till date. Besides Germany, it is operational in Russia, Mexico, Spain and Poland.