Spanish fintech ID Finance secures €12M credit line from a European Listed Bank; Know more

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Barcelona-based ID Finance, a company that claims to be a leading fintech in Spain and Mexico, announced that it has secured €12M in funding through a strategic deal with an undisclosed European bank.

ID Finance’s deal with a listed bank is a first-of-its-kind agreement.

“Pioneering fintech innovation”

Founded in 2012 by ex-bankers Boris Batin and Alexander Dunaev, ID Finance specialises in delivering innovative financial solutions.

The company leverages machine learning and advanced data science to offer competitive financial services to the underbanked, helping customers build credit profiles.

ID Finance says, “Our proprietary technology allows us to analyse vast amounts of data, including behavioural biometrics, identifies anomalies and increases the efficiency of risk assessment by 50 per cent.”

In 2021, the company introduced its financial wellness app in Spain named Plazo, which provides debit, savings, and credit solutions, empowering users to attain financial wellness.

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Capital utilisation

The funds will help ID Finance expand its credit portfolio in the Spanish market, leveraging its existing base of over 2 million registered users. The company also reports that Plazo has expanded its product range, issuing over 12,000 credit lines.

Co-founder Boris Batin says, “This is our first financing agreement with a renowned banking institution, which is not just a testament to ID Finance’s robust financial standing but also a beacon of trust and confidence in our business model.”

“As ID Finance continues to navigate the dynamic fintech landscape, this partnership is poised to unlock a new path for growth and innovation, further cementing our position as a market leader,” adds Batin.

ID Finance’s financial strength in Spain and Mexico

ID Finance’s Spanish consumer lending business, the primary profit driver, generated a net profit of €7.3M in the first nine months of 2023, with credit issuance in Spain reaching €191M.

This success has strengthened the company’s capital position, increasing its equity position by 4 per cent points to 28 per cent. 

The achieved capitalisation and profitability in Spain surpass the company’s commitments outlined in its ID Finance Spain Eurobond terms, with an equity-to-assets ratio of at least 15 per cent (currently 28 per cent) and an interest coverage ratio of 1.5 times (currently more than 3.5 times).

ID Finance’s presence in Mexico, another crucial market, has also seen positive growth, marked by new loans totalling €91M, a 17 per cent increase from the previous year. This development has translated into a revenue of €42M in the first nine months. 

Despite emphasising sustained growth, the company focuses on profitability, achieving a net profit of €0.8M, showing improvements in the quality of the credit portfolio.

In March 2023, ID Finance secured €30M investment from Kingsway Capital, while the Mexican unit strengthened its financial position with a $30M debt facility agreement with SR Alternative Credit.

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Vishal Singh

Vishal Singh is a News Reporter and Social Media Marketing Lead at Silicon Canals. He covers developments in the European startup ecosystem and oversees the publication's social media presence. Before joining Silicon Canals, Vishal gained experience at the Indian digital media outlet Inc42, contributing to its growth with insightful content. Despite being a college dropout, his passion for writing has driven his career in journalism.

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