The Naspers owned global payments company, PayU has invested 120 million dollars in Germany based online lender, Kreditech. This is the biggest ever value interest in a German firm. The deal will see Kreditech entering India and working with PayU India on launching its product in the nation.
The German company was founded in 2012 and so far rose funding from investors like JC Flowers, Varde, Blumberg Capital, HPE, Peter Thiel, Rakuten and the World Bank’s IFC.
Kreditech with its base camp in Hamburg, Germany likewise works in Poland, Spain, Czech Republic, Russia and Mexico. The company offers loans to individuals based on their creditworthiness which is analyzed using their online data instead of using traditional credit rating information.
PayU is the arm of South African investor Naspers, which purchased Citrus Pay in India. Kreditech has prior worked with PayU in Poland, where it created point of sale products and online cardless EMI items.
With this venture, the organization will additionally concentrate on worldwide development beginning with India, Alexander Graubner-Müller, CEO of Kreditech said.
"We are looking to introduce the product in India in the next few months together with PayU. The main idea behind this is to help people with lower purchasing power with larger ticket expenses, such as long-distance flights “Müller said. Further to this Müller added that Kreditech is setting up foundation in India whereas PayU will use its innovation which will take it to its client and dealer base.
Kreditech said it will grow its lending as a Service (LaaS) offering and convey its extraordinary AI and machine learning credit underwriting and loan management technology to PayU's 300,000-strong network of merchants.
PayU India CEO Amrish Rau said "This allows us to bring Kreditech on the PayU platform and offer it our merchants as well as consumers. We are also open to taking Kreditech to big ecommerce players in India to increase throughput on their platforms."
May 16, 2017