J.C. Flowers Leads €82.5M Financing in Kreditech to Build Banks of the Future

Peter Thiel and Amadeus Capital Partners join J.C. Flowers in Kreditech's €82.5 million founding round to spur its future growth.

Gaining fuel for its goal of “Building a ‘digital bank’ for everyone,” Kreditech has closed €82.5 million in Series C financing, with the round potentially hitting €100 million. The deal was led by investment firm J.C. Flowers and included participation from Peter Thiel and Amadeus Capital Partners who converted their previous bridge loans to Kreditech into Series C valued equity, as well as existing shareholders Värde Partners, HPE Growth Capital and Blumberg Capital.

Based in Hamburg, Germany, Kreditech is involved with developing solutions for banks and other financial firms such as P2P lenders and brokers to digitalize more of their business. Solutions include data services to automate portions of its customer onboarding process, risk management and gathering client information to assist in their support and retention. Among its more recent product lines are banking APIs which the firm began to support after Kreditech acquired Kontox in January.

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In announcing its financing, Kreditech’s Co-Founder and CEO Sebastian Diemer cited the new investor’s experience with both consumers and businesses, as he stated, “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.”

Upon completion of the financing, Kreditech has now raised over €300 million in funds through debt and equity deals. According to the firm, €160 million are unused debt facilities. As part of the deal, Loren Felsman of J.C. Flowers is joining Kreditech’s board.

On his new role and company’s investment in Kreditech, Felsman stated, “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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