Asset-based consumer credit platform Ibancar has signed its first debt facility up to an amount of €10m.
The facility has been headed by Knuru Capital and will enable Ibancar to fund its expanding loan book and continue its upward growth trajectory. Ibancar added the facility will also complement its existing and ongoing debt funding from crowdlending marketplaces.
Founded in 2011, Ibancaraut is focused on digital car title loans that can provide a means for borrowers to obtain loans based on the value of their car.
Ibancar is currently scaling rapidly in Spain and is planning to expand its activity to Mexico as well as launch other auto related credit products. During 2021, Ibancar experienced 3x year-on-year revenue growth and 4x loan origination growth while keeping impairments below 3% of revenue.
According to Ibancar, it intends 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 founder and CEO Alex Melis 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.”
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