German digital lending platform auxmoney bags €500M from Citi, Natixis

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Düsseldorf-based auxmoney, a digital lending platform, announced on Wednesday that it has secured €500M from US banking firm Citigroup and French asset management company Natixis. 

The company says it will use the funds to invest in consumer loans on its platform. To date, the company has raised $3.64B in funding. 

Daniel Drummer, CFO of auxmoney, says, “With two renowned financial institutions providing funding at scale, this deal underlines the profound trust of investors in auxmoney and the appeal of digital lending as an asset class, even in a more volatile market environment. In addition, this funding commitment further strengthens auxmoney’s excellent standing as a tech-enabled platform for institutional investors.”

The announcement comes over a year after the company raised €250M from Citigroup and Chenavari Investment Managers

auxmoney: What you need to know

The company shares an interesting story about its founding. Two of the co-founders were driving through Frankfurt’s banking district one day. Looking at the huge, shiny buildings housing the banks, they thought, “What if they could create a way for borrowers and investors to come together directly?”

Founded by Raffael Johnen, Philip Kamp, and Philipp Kriependorf in 2007, auxmoney is a digital-lending platform that provides private consumers and self-employed people with fast and easy access to credit. Institutional investors and auxmoney itself invest into consumer loans on the platform

The company uses digital data-based scoring technology and artificial intelligence (AI). The company’s mission is to promote and improve financial inclusion.

With its expertise in credit rating and underwriting, as well as unique risk models, the company makes more favourable loans available to more people while enabling investors to benefit from attractive risk-adjusted returns.

Raffael Johnen, CEO of auxmoney, says, “We are on a mission to promote and improve financial inclusion. With these additional strategic partnerships, we will enable more people across the credit spectrum to borrow at competitive rates, which is more important in the current macro environment than ever. In addition, our proprietary scoring and underwriting technology enable us to improve our offering. It’s great that more and more strong partners support our mission and foster financial inclusion with us.”

Since its inception, the German company has funded more than 400K loan requests with a total volume of more than €3B. Boudewijn Dierick, Managing Director at auxmoney Investments, leads the team responsible for this transaction.

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