Spanish Fintech Ibancar Secures Credit Facility Of Up to €10M led By Knuru Capital

Ibancar, the asset based consumer credit platform, has signed its first institutional debt facility “up to an amount of €10m.”

The business is scaling quickly in Spain and intends to expand its activity to Mexico as well as introduce other auto-related credit products, according to a release.

The facility was led by VC and private credit investor Knuru Capital and will allow the platform to “fund its growing loan book and continue its explosive growth trajectory,” the announcement revealed.

The update also mentioned that the facility will complement Ibancar’s existing and ongoing debt funding “from crowdlending marketplaces where it has built one of the strongest originator track records offering high returns to investors with exceptionally low credit losses.”

During 2021, the platform “experienced exceptional 3x year on year revenue growth and 4x loan origination growth whilst keeping impairments below 3% of revenue,” the announcement noted.

Ibancar, a Fintech business in scale up mode, is currently focused on digital car title loans that offer provide “a means for borrowers to obtain loans based on the value of their car.”

The announcement further noted that the proprietary platform is 100% digital and remote and is “able to offer cheaper, larger and longer loans than most other online lenders.”

The platform aims to offer an ethical alternative for borrowers who use costly and unsecured online lending products such as payday loans. Its use of cars as collateral also “allows it to bring underbanked, unbanked and credit invisible borrowers into the online consumer finance market,” the update noted.

Ibancar’s digital platform has been successful in the Spanish market where it has “issued €7m in loans and has also proven its resilience by continuing to perform and deliver significant growth without credit losses during the COVID crisis,” the announcement added.

Alex Melis, Founder and CEO at Ibancar, stated:

“We believe that most products in the online consumer credit market do not solve the borrower’s problem and the only way to solve this problem is by offering longer, larger, cheaper and transparent loans. The only inclusive and ethical way to deliver such loans is by using collateral. We are extremely proud of our success and plan to expand our product offering into car backed credit cards as well as secured B2C and C2C auto finance for marketplaces. We also intend to launch Ibancar in Mexico during 2022.”

The firm intends to announce an additional institutional debt facility of “up to €50m in 2022 and is currently working on a €3m equity raise to fund the development of new products and expansion into new markets.”

Sponsored Links by DQ Promote



Send this to a friend