Emerging markets Fintech firm ID Finance announced on Wednesday it has joined forces with former Elbrus Capital fund manager, Yuri Popov, and asset management Da Vinci Capital to launch FinTech Credit Fund, which is described as a $200 million debt finance fund aimed towards fintech companies with a focus in alternative lending.
“The vast majority of money going into fintech is chasing a small number of well-known startups. There are many more high quality fintech companies all over Europe, some of which are performing extremely well, that are seeking capital to scale. We see a huge opportunity to support these companies while providing a superior risk adjusted return to investors.”
ID Finance also reported that the Fund will initially focus on projects within the CIS and European markets. Funding will be provided to companies involved in consumer/SME lending, with balance sheet and marketplace lenders being eligible. Projects offering analytical solutions for credit scoring based on Big Data, AI and machine learning, as well as SaaS and PaaS solutions and payment services are of particular interest to the Fund and align with the investors’ areas of expertise. Investment decisions will be made based on the assessment of a number of criteria, including a company’s creditworthiness, the strength of their business model and technology, the quality of their loan portfolios, and risk and revenue potential. Oleg Zhelezko, Managing Partner, Da Vinci Capital, also shared:
“ID Finance and Da Vinci Capital will provide a solid investment process and infrastructure for the Fund as well as access to our broad network of institutional and private investors. Our expertise in fintech and alternative lending at an international level will also help to reduce credit risks.’”
Alexander Dunaev, Co-Founder, ID Finance, added:
“The alternative lending market is worth a potential $2 trillion and we see a huge opportunity to back the billion-dollar companies of tomorrow focused on digital lending.”