According to the offering page, ID Finance has received the backing of 248 investors hitting 76% of the target raise. ID Finance is offering 2.41% equity in the company at a pre-money valuation of £81 million.
ID Finance is a Fintech that is expanding into Latin America. Described as a “data science, credit scoring and digital finance company,” ID Finance formally split from its operations in Russia, the CIS region and Eastern Europe last year.
ID Finance’s risk management system uses machine learning and data science techniques to provide competitive financial services to the underbanked and help customers build their credit profile. Anyone with a smartphone in Spain, Brazil and Mexico can apply online for a loan via its Moneyman and Plazo brands, regardless of their credit history.
ID Finance reports adding 40,000 new users each week. Currently, it claims approximately 3 million users.
Additionally, ID Finance states that it is on track to double revenues this year to €90 million – up from €13 million in 2017 – and is targeting €267 million of revenue by 2021.
Boris Batin, CEO and co-founder at ID Finance, said they were delighted to welcome new investors onboard:
“We have industry-leading technology, a financially prudent business model and a well established international team ready to scale in some of the most exciting markets for Fintech.”
ID Finance was recently selected by Euronext, owner of the Paris Stock Exchange, for its IPO program thus early investors may soon gain an exit opportunity.
The TechShare program is designed for technology companies and helps to prepare them for potential entry into the stock exchange.
Luke Lang, co-founder and CMO, Crowdcube commented on the raise:
“We’re not at all surprised by the high level of investor interest. ID Finance has a proven track record and operates in the dynamic Spanish and Latin American markets for fintech – a sector that is attracting huge interest with investors coming to Crowdcube.”
ID Finance points to data from the World Bank that shows 61% of Mexico’s population is excluded from the traditional banking system, while 40% of Brazil’s 207 million population are underbanked. Brazil has an estimated revenue pool of $24 billion for Fintech companies over the next 10 years, with payments, lending and personal finance the most promising segments according to Goldman Sachs. Meanwhile, Finnovista has predicted that Fintechs could take up to 30 percent of the Mexican banking market over the next decade.
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