German digital peer-to-peer lending platform Auxmoney has raised nearly $508 million in funding from investors that it will use to offer more consumer loans.
Returning investor Citi and French-American asset management firm Natix led Auxomoney’s fundraising, according to a Tech Funding News report on Wednesday (August 3). The company has raised $3.64 billion in investor funding since its inception.
“With two renowned financial institutions providing large-scale funding, this agreement underscores the deep investor confidence in Auxmoney and the appeal of digital lending as an asset class, even in a more volatile market environment,” said Auxmoney’s chief financial officer, Daniel Drummer, in the report. “This funding commitment further reinforces Auxmoney’s excellent reputation as a technology platform for institutional investors.”
Auxmoney was founded in Düsseldorf in 2007 by Raffael Johnen, Philip Kamp and Philipp Kriependorf. It provides a peer-to-peer lending market, said to be the largest 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,” Auxmoney CEO Raffael Johnen said in the report. “Through these additional strategic partnerships, we will enable more people from all credit backgrounds to borrow at competitive rates, which in the current macroeconomic environment is more important than ever.
“Our proprietary rating and underwriting technology allows us to continually improve our offering. It’s great that more and more strong partners are supporting our mission and driving financial inclusion with us,” he said.
Related: 76% of German convenience seekers are interested in using great apps to manage interpersonal communications
In Germany, a significant number of consumers identified as having a convenience-seeking personality (76%) said they were interested in using great apps to manage interactions with family, friends or romantic partners , one of 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, released in conjunction with PayPal, was based on a survey of nearly 10,000 consumers in Australia, Germany, the UK and the US.
Overall, German consumers tend to be more skeptical of a super app than any other country surveyed. Data shows that only a quarter of consumers nationwide believe the benefits of a super app are worth the risk of revealing their personal information, for example.
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