Daily News: January 23, 2015

VPC Closes Kreditech Credit Facility

The Kreditech Group, a consumer finance technology group, announced the completion of a $200 million credit facility from Victory Park Capital.

The funding strengthens Kreditech’s position as a leader in the consumer finance technology market. The group will use the new financing to continue its rapid growth. With a focus on the geographic rollout and expansion of its product portfolio, Kreditech expects the financing to deliver scale, lower cost and provide flexibility.

“We look forward to helping support the company’s future growth and success in the consumer finance technology space,” said Gordon Watson, principal at Victory Park Capital. “Kreditech’s credit-scoring model is impressive and has the ability to identify target customers in any market, even underbanked customers in emerging markets.”

The Kreditech Group uses big data and complex machine-learning algorithms to serve a simple mission building a ‘digital bank’ for the unscored worldwide.

The Kreditech Group is split into two parts “Kredi” stands for the subsidiaries operating as financial service providers that issue credit to private individuals. The second part, “tech” is the Hamburg-based tech company — Kreditech Holding — developing banking technology and providing supporting services.