Auxmoney bucks trend for alternative lenders with mega €150m fundraise

By Daniel Lanyon on Wednesday 2 September 2020

Alternative Lending

The German marketplace lender has raised the huge round, one of the largest in the Eurozone. 

Auxmoney bucks trend for alternative lenders with mega €150m fundraise
Image source: CFO Daniel Drummer, CEO Raffael Johnen and COO Arie Wilder (from left to right)

So far 2020 has been a pivotal one for non-bank lenders. The spectre of a global recession brought on by the pandemic is the industry's first big test.  

Germany-based Auxmoney has bucked a mood of scepticism, however, with massive €150m fundraise, the largest fintech funding round in the eurozone in 2020 so far.  

The new equity funding comes from a number of investors led by Centerbridge, a private investment management firm based in New York.  

Centerbridge is acquiring stakes from existing investors as well as adding new capital to become a majority shareholder.  

Existing leading venture capital investors such as Foundation Capital, Index Ventures, and Union Square Ventures remain fully invested 

Raffael Johnen, Auxmoney CEO and co‐founder (pictured centre), says the new funding round is a strong signal of confidence, particularly given the pandemic.  

“The capital will allow us to further expand our leading market position and capture opportunities that arise in this environment,” he said. 

“By providing German consumers and self‐employed with critically needed access to capital, we are making an important contribution to the recovery of the German economy. Centerbridge's deep expertise in credit markets will help us broaden our reach to institutional platform investors who are funding loans via our marketplace,” he added.  

“Together we are pursuing the goal to make Auxmoney a leading digital loan provider in Europe", he said. 

Maximilian Rinke, Managing Director at Centerbridge says the firm has “closely monitored the players in this market in recent years and concluded that Auxmoney sets itself apart through unique technology.”  

“We are convinced that Auxmoney has immense growth potential. The German loan market is still characterised by traditional scoring methods and manual processes. Through automation, Auxmoney is providing more and more people easier access to the credit they deserve. In doing so, Auxmoney sets new standards for its customers and cooperation partners", Rinke said.  

Centerbridge's investment in Auxmoney is subject to approval by antitrust authorities. 

Sign up for our newsletters

Your daily 7am download of all things alternative finance and fintech.

Fintech and alternative finance headlines with an exclusive Editor's Note each week. Delivered Monday at midday.

AltFi's new weekly US newsletter breaking down the ins and outs of America's burgeoning fintech sector. Delivered Monday 9am EST/ 6am PST.