Cloud-based consumer credit platform Ibancar has netted €1.65m in its new equity round, which will help it expand across Europe.
The capital injection was led by Knuru Capital, with commitments also coming from a syndicate of internet entrepreneurs and senior finance executives.
Funds will be used to help Ibancar to increase its lending capacity, increase product development, bolster marketing efforts and make key hires. The FinTech company, which was launched in Spain, is now looking to move into the UK and other European markets.
Ibancar is based on car equity line of credit that enables inclusive and affordable ways for borrowers to get loans based on the value of their car. The digital platform helps people get access to loans that might have previously been unable to access them due to how the algorithms determine creditworthiness.
By using a vehicle as collateral reduces the risk of credit losses and allows for cheaper loans, it said.
Ibancar founder and CEO Alex Melis said, “At Ibancar our belief is that the only way to be inclusive and serve the entire credit spectrum of borrowers is to reduce credit losses. That can only be achieved, at scale, by changing borrower behaviour and that, in turn, is mainly achievable with the use of collateral.
“We are extremely proud and happy to have found investors that share our vision and ambitions. We already have a fantastic working relationship with the team at Knuru Capital and look forward to building the business together.”
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