Kreditech is a Germany-based consumer finance startup that focuses on lending money to consumers with little or no credit history, implementing a big data approach to generate a live credit rating for the 5 billion people who remain unscored around the world. In addition to securing a $200 million credit line, Kreditech is also preparing to raise a Series C round at an estimated $750 million premoney valuation.
Kreditech, the consumer finance startup that focuses on lending money to “unbanked” consumers with little or no credit rating, is today announcing a hefty line of funding that it will use to expand its business. It is getting a $200 million credit line from Victory Park Capital, one of the largest in the history of online lending services. Kreditech is not disclosing its valuation but as an estimate, we know that the company is preparing in March/April to raise a Series C round at a $750 million pre-money valuation (and as a point of comparison of growth, its $40 million Series B was at a $190 million valuation). The longer-term aim is for an IPO in two to three years, after the current pace of expansion slows down.