Spanish Fintech Platform Ibancar Raises Credit Facility Of Up To €10m Led By Knuru Capital
MADRID, Dec. 22, 2021 /PRNewswire/ — Ibancar, the asset based consumer credit platform has signed its first institutional debt facility up to an amount of €10m. The business is scaling fast in Spain and now plans to expand its activity to Mexico as well as launch other auto related credit products.
The facility has been led by global venture capital and private credit investor Knuru Capital and will allow the platform to fund its growing loan book and continue its explosive growth trajectory. The facility will complement Ibancars existing and ongoing debt funding from crowdlending marketplaces where it has built one of the strongest originator track records offering high returns to investors with exceptionally low credit losses.
During 2021 the platform experienced exceptional 3x year on year revenue growth and 4x loan origination growth whilst keeping impairments below 3% of revenue.
Ibancar, a fintech business in scale up mode, is focused on digital car title loans that provide a means for borrowers to obtain loans based on the value of their car. The proprietary platform is 100% digital and remote and is able to offer cheaper, larger and longer loans than most other online lenders. The platform aims to provide an ethical alternative for millions of borrowers who currently use expensive unsecured online lending products like payday loans. Its use of cars as collateral also allows it to bring underbanked, unbanked and credit invisible borrowers into the online consumer finance market.
Ibancars digital platform has proven extremely successful in the Spanish market where it has issued €7m in loans and has also proven its resilience by continuing to perform and deliver significant growth without credit losses during the COVID crisis.
Alex Melis, founder and CEO of Ibancar, said, “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. 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.”
The company plans to announce an additional institutional debt facility of up to €50m in 2022 and is currently working on a €3m equity raise to fund the development of new products and expansion into new markets.
Ibancar is a fast-growing fintech lending platform transforming consumer credit by making fast, affordable online loans available to the full social and credit spectrum of borrowers with a focus on ethical and inclusive lending practices.
About Knuru Capital
Knuru is a venture investor that pursues equity and credit opportunities in the technology sector across the GCC, Africa and Southern Europe with a particular interest in the financial services industry and under-served markets.
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