auxmoney, a marketplace lender based in Germany, has received €250 million for loans from Citigroup and Chenavari Investment Managers. Chenavari is a credit-focussed asset manager with core expertise in European markets. auxmoney reports that it is now co-investing for the first time alongside partners as part of this transaction. auxmoney is mainly a consumer lender. Since its inception, the platform has originated over 300,000 loans with an average payout of 5%. Individual investors may participate in the offerings for as little as €25.
Raffael Johnen, CEO of auxmoney, says that their investment engine enables them to set up partnerships at scale, further broadening their base of institutional investors.
“Today, we are delighted to add another strong set of partners to the auxmoney platform. With this significant investment, auxmoney is able to bring the benefit of digital loans to even more consumers.”
Hubert Tissier de Mallerais, Senior Portfolio Manager at Chenavari, commented on the partnership:
“We are excited that our partnership with auxmoney will enable us to invest in digital origination of consumer loans in Germany for the first time. The segment has been partially underserved by traditional lenders. By leveraging advanced digital technology, auxmoney provides more borrowers access to credit while allowing investors to diversify their portfolios into a highly attractive asset class.”
Daniel Drummer, CFO at auxmoney, said the investment proves the appeal of the asset class while further strengthening auxmoney’s position as a leading provider of tech enabled credit.
Sebastian Walf, Managing Director at Citigroup, stated:
“We are financing Fintechs across Europe and the credit performance of auxmoney’s marketplace loans has been remarkably stable during the coronavirus pandemic. We are delighted to be entering into this partnership with one of the leading European fintechs.”
While many online lenders launched as accepting retail money only, over time, it has become imperative to incorporate institutional funds to scale platforms.