Ibancar, an asset-based consumer credit platform, signed its first institutional debt facility up to an amount of €10 million ($11.3 million). The business is scaling in Spain and now plans to expand its activity to Mexico and launch other auto related credit products.
Global venture capital and private credit investor Knuru Capital led the debt facility, which and will allow Ibancar to fund its loan book and continue its growth trajectory. The facility will complement Ibancar’s existing and ongoing debt funding from crowd lending marketplaces.
During 2021, Ibancar has experienced triplicate year-over-year revenue growth and quadruple loan origination growth while keeping impairments below 3% of revenue.
Ibancar is a financial technology business focused on digital car title loans. Ibancar’s digital platform has issued €7 million ($7.89 million) in loans in Spain.
“We believe that most products in the online consumer credit market do not solve the borrower’s problem, and the only way to solve this problem is by offering longer, larger, cheaper and transparent loans,” Alex Melis, founder and CEO of Ibancar, said. “The only inclusive and ethical way to deliver such loans is by using collateral. We are extremely proud of our success and plan to expand our product offering into car-backed credit cards as well as secured B2C and C2C auto finance for marketplaces. We also intend to launch Ibancar in Mexico during 2022.”
Ibancar plans to acquire an additional institutional debt facility of up to €50 million ($56.5 million) in 2022 and is currently working on a €3 million ($3.3 million) equity raise to fund the development of new products and expansion into new markets.
