ID Finance, company Fintech specialising in online lending, sells part of its shareholdings to various investors through marketplace Crowdcube investment fund, worth €5.7m.
The great advantages of online loans are the ability to process the application without going to a branch, and sometimes even the possibility of obtaining cheaper financing than usual. Although the latter is not always a reality.
In today's digitised world, they are playing an increasingly important role in corporate finance.
ID FINANCE
ID Finance uses machine learning and data science to offer financial services to those who are unable to obtain a loan through traditional banking institutions..
In fact, its challenge is to empower people with restricted access to banking services to promote their financial inclusion.
Founded in 2012, it moved its headquarters from Russia to Barcelona in 2016.
It currently employs 320 staff, has more than 3 million users, and acquires 40,000 new users every week.
This 2019, it expects to close the year with a turnover of €90m, double what it earned in 2018.
In November, the company sold part of its shares to more than 1,200 new partners in 62 countries, in a round valued at 5.7M€.
Each of them has invested an average of 4,700 euros to boost the firm's growth.
SUCCESS OF EQUITY CROWFUNDING
This is the largest equity crowdfunding transaction by a Spanish company.
It is a method of crowdfunding which, unlike the crowdfunding The traditional approach opens the door for patrons to hold equity stakes in the company.
ID Finance's figure represents a new milestone in the field of alternative financing in Spain, as it is the first transaction to exceed the €5m threshold.
These figures show that Crowdcube can aspire to become a Europe-wide capital market, based on a true digitisation of start-up and SME capital raising.
In addition, it is worth noting that, in the third quarter of 2019, 38% of the investment channelled through this channel went to companies in the fintech sector.
NATIONAL AND INTERNATIONAL EXPANSION
ID Finance's growth plan has the Spanish market and the Latin American market, especially Brazil and Mexico, as its two main growth focuses.
Some of the firms that are already investing in companies in the sector in the region include Goldman Sachs, Morgan Stanley, Victory Park Capital, Santander InnoVentures, Softbank and Tencent.
OTHER RELEVANT OPERATIONS IN THE SECTOR
HOUSERS
Housers is a crowdfunding platform, which allows people to invest in real estate projects..
Founded in 2015 and headquartered in Madrid, the company has a total of 4.5M$ raised in the sale of its shares in 6 rounds of financing, the last one in July this year.
MITTO
Mitto is much more than a simple debit card for young people aged between 14 and 30, the so-called "Generation Z".
It is a modern, easy and advantageous payment system..
That's why, last September, it was able to capture 2M€ in a seed round to continue its growth.