auxmoney, a leading digital-lending platform for consumer credit in Europe, has secured a EUR 250 million investment for its marketplace loans from Citigroup and Chenavari Investment Managers. After auxmoney announced to invest in loans on its own marketplace in November 2020, the fintech company is now co-investing for the first time alongside partners as part of this transaction.

Through auxmoney’s investment arm, investors benefit from highly efficient processes including fully automated onboarding, risk assessment and investor reporting. With the latest iteration of its scorecard, leveraging advances in Machine Learning, auxmoney facilitates investors access to a truly digital asset class.

Raffael Johnen, CEO of auxmoney, comments: "With our investment platform, we are able to set up partnerships at scale, further broadening our base of institutional investors. Today, we are delighted to add another strong set of partners to the auxmoney platform. With this significant investment, auxmoney is able to bring the benefit of digital loans to even more consumers.”

Chenavari is a credit-focused asset manager, founded in 2008, with core expertise in European markets. Hubert Tissier de Mallerais, Senior Portfolio Manager at Chenavari, said: “We are excited that our partnership with auxmoney will enable us to invest in digital origination of consumer loans in Germany for the first time. The segment has been partially underserved by traditional lenders. By leveraging advanced digital technology, auxmoney provides more borrowers access to credit while allowing investors to diversify their portfolios into an attractive asset class.”

Daniel Drummer, CFO at auxmoney, comments: “This funding commitment from one of the leading global debt investors once again proves the appeal of digital lending as an asset class. The investment further strengthens auxmoney’s position as a leading provider of technology-enabled access to credit in Europe. We see enormous momentum for technology-driven credit offerings in the market. Further new partnerships are in the making.”

Sebastian Walf, Managing Director at Citigroup, adds: “We are financing fintechs across Europe and the credit performance of auxmoney’s marketplace loans has been remarkably stable during the coronavirus pandemic. We are delighted to be entering into this partnership with one of the leading European fintechs.”

Boudewijn Dierick leads auxmoney’s investment arm as Managing Director to further strengthen the company’s capital markets platform. Dan Zakowski, SVP Marketplace Funding at auxmoney, is heading the deal team for today’s transaction.