auxmoney will onward lend the amount received from Citigroup and Chenavari.

Auxmoney, a Germany-based loans marketplace, received €250 million for loans from Citigroup and Chenavari Investment Managers, a credit-focused asset manager. The two companies are partnering with the German firm, a primarily consumer-oriented lender, for lending on its marketplace. For the first time, auxmoney will also co-invest alongside these partners. (CROWDFUND INSIDER)

Raffael Johnen, CEO,  said: “With our investment platform, we are able to set up partnerships at scale, further broadening our base of institutional investors.”

“With this significant investment, auxmoney is able to bring the benefit of digital loans to even more consumers,” he added.

The funding deal with Citi and Chenavari follows on a similar transaction that the platform struck with BNP Paribas in November 2020.

Digital loan origination

Hubert Tissier de Mallerais, Senior Portfolio Manager at Chenavari, commented on the partnership: “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 a highly attractive asset class.”

Sebastian Walf, Managing Director at Citigroup, stated:

“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.”

Related Story:  LendingClub Is The First Fintech To Acquire a Bank