Auxmoney receives $16 million in funding
Auxmoney is a peer-to-peer marketplace that has raised $16 million in Series B funding led by Foundation Capital. Partech Ventures, Scott Bommer, Index Ventures, and Union Square Ventures also participated in this round. Auxmoney has now raised a total of $29 million in funding.
“We are about to witness a major shift in consumer behaviour towards peer-to-peer loans. As clear market leader in Germany, auxmoney is right at the forefront of this development,” he said. “With our new partners on board, we are ready to turn crowdlending into an integral and mainstream element of Germany’s consumer finance landscape,” stated Auxmoney CEO and co-founder Raffael Johnen.
Auxmoney assesses the risk of borrowers by using an algorithm that looks at a variety of signals, including some of the traditional metrics that banks use like credit history. It also looks at several subtle signals like how potential borrowers behave on its website and elsewhere online.
Auxmoney facilitated nearly 20,000 loans to date that are worth €100 million in total. This is more than half of which it says were issued in the past 12 months. Auxmoney will be letting international investors put money into the platform soon. Auxmoney has a registered user-base of around 600,000 so far.