Stockholm-headquartered Qred, a small business lending service provider, has reportedly received a substantial investment from Nordic Capital.
Although the exact amount invested has not been shared publicly, Sweden’s Breakit.se reveals that Nordic Capital may have invested just over half a billion kronor (appr. €49 million) in a deal that has valued Qred at over 1 billion kronor (appr. €98 million).
Established in 2015, Qred aims to address the significant and rising demand for small business loans that large banking institutions have not been effective at providing. Offering an automated credit system, Qred supports growth-stage firms with innovative solutions, so they can reliably gain access to much-needed capital.
The service has been active in the Nordic region and the Netherlands, working with around 25,000 small businesses during the last 6 years. Last year, the firm expanded into Brazilian markets through a joint initiative with Webrock. At present, Qred claims around 12,000 monthly active users.
Having recruited ex- Senior Product Manager Marcus Uggla from Klarna in June of this year, the firm has also introduced a credit card focused on SMEs. The firm also reveals that it will remain focused on its growth strategy, which may include the launch of new products and services.
Nordic Capital has now become a “significant shareholder in the company, while the current founder and management will remain as majority owners.” Sources familiar with the matter also told Breakit that Nordic Capital “buys out several of the smaller owners at the same time as they enter with expansion capital.”
David Samuelson from Nordic Capital remarked:
“By identifying a new market segment and combining it with leading technology, the company has opened the door for many small businesses to grow and realise their dreams. Studies show that lack of financing is one of the biggest challenges for small businesses, while funds lent to small businesses can considerably increase GDP growth, the creation of new jobs and significant extra tax revenues.”
