MADRID, Nov. 24, 2020 /PRNewswire/ -- Ibancar, the cloud-based consumer credit platform incorporated in the UK and Spain, has completed its first round of external equity funding in a dual raise in Spain and in the United Kingdom for a total amount of EUR 1.65m. The business was launched in Spain and now plans to expand its activity into the UK and other European territories.
The funding round has been led by global venture capital investor Knuru Capital, with participation from a syndicate of internet entrepreneurs and senior finance executives. The financing will allow the Company to enter scale-up mode by strengthening its capital base to support lending growth, as well as investment in product development, marketing and the hiring of key executives.
Ibancar, a fintech startup, is a platform focused on CLOC (Car Equity Line of Credit) that provides an inclusive, fast and affordable means for borrowers to obtain loans based on the value of their car. Their proprietary platform is 100% digital and remote. The Company aims to provide an affordable solution for millions of borrowers who under other circumstances may not be eligible for loans due to the increasingly exclusive nature of algorithm driven online lenders. The use of a vehicle as collateral reduces the risk of credit losses and consequently allows the platform to offer cheaper loans to the borrower and unlocks a straightforward instalment loan system.
Ibancar's "car title" or "logbook" loans offer a cheaper, simpler, and ethical alternative to pay-day loans. Its system and approach to this type of loan has proven successful in the Spanish market where it has issued €3M in loans since 2018. The business has also proven its resilience by continuing to perform well and delivering significant growth in 2020 despite the challenging market conditions arising from the COVID crisis.
Alex Melis, founder and CEO of Ibancar, commenting on the funding round, said "At Ibancar our belief is that the only way to be inclusive and serve the entire credit spectrum of borrowers is to reduce credit losses. That can only be achieved, at scale, by changing borrower behaviour and that, in turn, is mainly achievable with the use of collateral. We are extremely proud and happy to have found investors that share our vision and ambitions. We already have a fantastic working relationship with the team at Knuru Capital and look forward to building the business together."
Alain Dib, CEO of Knuru, said, "We are looking forward to being part of the Ibancar journey as their first institutional investor and to partner with an experienced entrepreneur with big plans to redefine access to the lending industry. Ibancar is our first investment in Europe, where we have developed a thorough understanding of the market and we continue to engage in potential investment opportunities across our priority sectors."
Ibancar is a fast-growing lending platform transforming the financial services industry in Europe by making fast, affordable online loans available to the full spectrum of borrowers including prime, subprime, underbanked and credit invisible.
About Knuru Capital
Knuru is a venture investor deploying transformative capital into growth stage technology businesses globally with a particular interest in the financial services industry and under-served markets.