Credit marketplace Auxmoney picks up €150m in new funding round
Peer-to-peer loan marketplace Auxmoney has raised €150 million in a new funding round, the largest for a German fintech so far in 2020.
Uncovered by Handelsblatt, the equity fundraising is led by US-based financial investor Centerbridge. Existing investor Foundation Capital is also involved. Centerbridge now owns the majority of Auxmoney equity.
Raffael Johnen, co-founder and managing director, tells Handelsblatt that his firm has taken a hit during the coronavirus crisis, but that the new capital is for “strategic growth” rather than propping up lost business.
The co-founder has not ruled out the possibility his firm might go on the hunt for an acquisition. Equally, an IPO might be on the cards.
Auxmoney was part of a handful of German credit providers looking to provide government-backed coronavirus relief loans.
The German development bank spearheaded the “KfW loans” project. It provides a loan for medium-sized companies that is settled via a bank or another financing partner.
KfW assumes 100% of the liability, which means that the financing partner does not bear any credit risk.
Johnen tells Handelsblatt that his firm had to be careful not to take on greater risk during the height of the crisis. Despite this, he adds that greater loan failure rates have not been observed on their platform.