Berlin-based SME Lending platform Spotcap has closed a €5M round of funding with Kreos Capital. The fresh capital will be used to finance the company's lending activities in Spain and the Netherlands, and to expand its operations globally.
The company, which offers applicants a five-minute decision on a loan after an algorithm rates their creditworthiness, may need to raise 1 billion euros ($1.12 billion) in the next three to five years to expand in Europe and reach a target market share of 2.5 to 5 percent, Triebel said. The company raised 13 million euros when it started six months ago. Spotcap focuses on small- and mid-sized enterprises, or SMEs, that have been active more than a year. Those businesses often have limited access to credit as they pose more risk to banks and don’t have the track record to prove their ability to repay the funds.