CapitalBox acquires the Dutch SME lending business from Spotcap Netherlands

Small and medium-sized enterprises (SMEs) represent 99% of all businesses in the EU, and therefore form the backbone of Europe’s economy. They employ around 100 million people, as well as account for more than half of Europe’s GDP. Besides, SMEs bring innovative solutions to challenges like climate change, resource efficiency, and social cohesion and help spread this innovation throughout Europe’s regions.

CapitalBox acquires Spotcap Global

In the recent development, Ferratum Group’s subsidiary CapitalBox, an online pan-European small and medium-sized enterprises (SME) funding platform, has acquired the Dutch division of Netherlands-based fintech Spotcap Global as part of its own ongoing European expansion. The parties involved have agreed not to disclose the purchase price of the acquisition.

With this development, CapitalBox will gain access to Spotcap Netherland’s (Spotcap NL) market knowledge, existing network, and its underwriting expertise. Besides, the acquisition of the Dutch lender builds on CapitalBox’s footprint and gives the fintech startup deeper access to the Netherlands – home to more than 1.1 million SMEs.

According to the fintech startup, Spotcap NL will continue under the brand name CapitalBox. The transition will take place in the coming months. The Spotcap brand will continue to thrive, but only as a Lending-as-a-Service provider helping financial institutions globally to digitise their SME lending with the LendSuite proposition.

Scott Donnelly, CEO of CapitalBox says, “By pooling our knowledge and teams, we (CapitalBox) will be stronger than ever and better able to finance SMEs that want to grow. This is especially important when our economies return to normal and conventional banks continue to fail to serve the all-important SME segment. 

The existing Spotcap NL distribution channels will allow CapitalBox to increase its average loan size at low customer acquisition costs. Ferratum plans to merge Spotcap NL to the Dutch business of CapitalBox, subsequently also rebrand the business CapitalBox.

Currently, CapitalBox claims to be the market leader when it comes to fintech SME lending in six European countries, namely the Netherlands, Sweden, Finland, Denmark, the UK, and Lithuania. It provides – within one day and through its own credit platform – loans to SMEs of up to €350,000, with a term of up to 36 months.

Lending-as-a-Service

Spotcap is a multinational fintech operating as a direct lender and a Lending-as-a-Service provider. Founded in 2014, it has issued more than €400M in credit lines operating as a direct lender to SMEs in the UK, Netherlands, Spain, Australia, and New Zealand.

In addition, it has developed a strong partner network across the Netherlands involving many specialised SME advisory firms, including accountants and tax advisors which connects the business to high-quality SMEs looking for tailored and flexible financing.

The company has helped multiple organisations, such as BAWAG Group in Austria, Cembra Money Bank in Switzerland, and buy-now-pay-later provider Zip Co in Australia and New Zealand region, to launch straightforward financing for SMEs in their respective regions.

Image credit: Spotcap