Auxmoney, a European digital lending platform for consumer credit, has secured €250 million in investment from Citigroup and Chenavari Investment Managers.
Auxmoney is an online peer-to-peer loan marketplace, founded in 2007. Its lending platform enables private consumers to borrow from private investors for personal loans.
The firm says it offers a “bank free borrowing system” and a return on investment for lenders.
Its investment arm allows users to benefit from “highly efficient processes” including “fully automated onboarding”, risk assessment, and investor reporting.
It says the latest iteration of its scorecard leverages “advances in machine learning” to offer its users access to a “truly digital asset class”.
Auxmoney has raised more than $3 billion across 11 rounds, four of which are debt financing. It received a $1.5 billion financing injection from major investor Aegon in 2017.
“With our investment platform, we are able to set up partnerships at scale, further broadening our base of institutional investors,” claims Raffael Johnen, CEO.
“We are delighted to add another strong set of partners to the platform. With this significant investment, Auxmoney is able to bring the benefit of digital loans to even more consumers.”
Digital lending appeal
New investor Chenavari is a credit-focused asset manager, founded in 2008.
Hubert Tissier de Mallerais, senior portfolio manager at the firm, says its investment enables it to break into digital origination in Germany.
“The segment has been partially underserved by traditional lenders,” he adds. “By leveraging advanced digital technology, Auxmoney provides more borrowers access to credit while allowing investors to diversify their portfolios into an attractive asset class.”
Daniel Drummer, chief financial officer (CFO) at Auxmoney, says the round demonstrates “the appeal of digital lending as an asset class.”
He adds: “The investment further strengthens Auxmoney’s position as a leading provider of technology-enabled access to credit in Europe.
“We see enormous momentum for technology-driven credit offerings in the market. Further new partnerships are in the making.”