Online lender Spotcap has announced the closing of its third financing round, raising €31.5 million in funding. The investment was led by private equity firm Finstar Financial Group and included participation from existing investor Holtzbrinck Ventures.
Although based in Berlin, Spotcap operates online lending platforms targeting Australia, Spain and the Netherlands. With the new funding, the firm intends to extend its presence to additional regions as well as using the investment to help finance their existing operations in Australia, Spain and the Netherlands. Having developed credit scoring technology to evaluate loans, Spotcap provides lending to small and medium size businesses.
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For Spotcap, the financing round is the firm’s third in 18 months, having previously raised €18 million in debt and investment in two separate rounds. Previous investors include Berlin based Rocket Internet and Access Industries.
With Finstar Financial Group participating in the current round and taking an equity stake, it is a sign of belief that the lender could eventually be an IPO or acquisition candidate. A private equity firm, Finstar Financial Group targets deals in the financial, technology, telecom, retail and real estate sectors and typically invests between $20 to $200 million. In addition, the firm has a 3-5 year investment horizon with an IPO or sale exit strategy expected.
On the deal, Nicholas Jordan, CEO of Finstar, stated: “Finstar is pleased to be working in partnership with multinational online MSME lender Spotcap. By acquiring a stake in Spotcap, we are strengthening our position in the digital financial services sector and increasing our reach to new territories. As its shareholder and major strategic partner, Finstar will intensify efforts to further develop Spotcap’s innovative online lending platform and facilitate its global expansion into high-yielding markets.”