German digital peer-to-peer lending platform Auxmoney raked in almost $508 million in investor funding that it will use to offer more consumer loans.
According to a Tech Funding News report Wednesday (Aug. 3), returning investor Citi and American French-based asset management company Natix led Auxomoney’s fundraising round. The company has raised $3.64 billion in investor funding since its inception.
“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 asset class, even in a more volatile market environment,” Auxmoney CFO Daniel Drummer said in the report. “This funding commitment further strengthens Auxmoney’s excellent standing as a tech-enabled platform for institutional investors.”
Auxmoney was founded by Düsseldorf in 2007 by Raffael Johnen, Philip Kamp and Philipp Kriependorf. It provides a peer-to-peer lending marketplace, which is says is the biggest in its space in Europe. The company uses scoring technology based on digital data and advances in artificial intelligence (AI).
“We are on a mission to promote and improve financial inclusion,” said Auxmoney CEO Raffael Johnen in the report. “With these additional strategic partnerships, we will enable more people across the credit spectrum to borrow at competitive rates, something that in the current macro environment is more important than ever.
“Our proprietary scoring and underwriting technology enable us to continuously improve our offering. It’s great that more and more strong partners support our mission and foster financial inclusion with us,” he said.
Related: 76% of German Convenience-Seekers Interested in Using Super Apps to Manage Interpersonal Comms
In Germany, a significant number of consumers identified as having a convenience-seeker persona (76%) said they are interested in using super apps to manage interactions with family, friends or romantic partners, one of the 11 areas of their lives consumers would like to see integrated into a super app, according to “The Super App Shift: How Consumers Want To Save, Shop And Spend In The Connected Economy.”
The report, published in collaboration with PayPal, was based on a survey of close to 10,000 consumers in Australia, Germany, the U.K. and the U.S.
Overall consumers in Germany tend to be most skeptical of a super app than any of the other countries studied. The data shows that just one-quarter of the country’s consumers believe the advantages of a super app would be worth the risk of revealing their personal information, for example.
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