Lending and credit history startup Kreditech has picked up $10.4m in a strategic from Japanese e-commerce and web giant Rakuten.
Kreditech is reportedly valued around €300m following the round.
The Hamburg-based business offers lending to people without a credit history while also helping them build one up over time.
Outside of its lending service the company also provides a digital wallet and personal finance management to help users manage their credit scores.
The company also offers ‘credit as a service’ model that allows partners to integrate its credit products as a payment method or funding source.
It will use the capital to forge more partnerships.
Rakuten’s stake in the company will help it expand outside of Europe and into Asia.
Kreditech founder and CEO said, “Rakuten invests directly into our mission to improve financial freedom for the underbanked through technology.”
The company’s CFO Rene Griemens added “In addition to the financial investment, we envision future partnership opportunities.
“With its strong market position in Asia, Rakuten could be a door opener for us.”
The financing comes out of Rakuten’s $100m global fintech fund.
It has previously backed London money-transfer services Azimo and Currency Cloud as well as Belfast-based bitcoin payment system Bitnet.
Rakuten eventually acquired the struggling Bitnet to launch a blockchain research lab.
Michael Piechalak of the Rakuten FinTech Fund will join the Kreditech board as an observer.
Kreditech closed its Series C round in March of this year at $11m.
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