German-based loan business auxmoney has secured the capital it needs to target further expansion in the rapidly growing peer-to-peer (P2P) finance market.
Set up by Raffael Johnen, Philipp Kriependorf and Philip Kamp 2007, auxmoney has facilitated a reported 11,000 loans worth €45 million (£39.2 million).
The business now joins the likes of Funding Circle and TransferWise as a financial services portfolio company of new backer Index Ventures. Early-stage investor Index Ventures is based in London, Geneva and San Francisco and has previously supported the likes of Skype and Dropbox.
According to auxmoney, which allows private borrowers to secure personal loans funded by private investors, the funding puts the business in a ‘unique position’ to further capitalise on its position in Germany’s P2P market and continue its expansion course.
Johnen, co-founder and CEO of auxmoney, says, ‘We are delighted to welcome Index Ventures and Union Square Ventures, two prominent and highly experienced partners, on board.
‘Both are intimately familiar with online marketplaces such as ours and ideally qualified within global financial services.’
The company’s Düsseldorf office, Johnen says, will see growth of its current 30-staff level through securing the $12 million investment.
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Lining up alongside Index Ventures as a backer of auxmoney is Union Square Ventures, a New York-based firm which focuses on the internet and mobile internet market. Its historic investments include social media platform Twitter, blogging service Tumblr and restaurant review system Foursqaure.
Commenting on the new investment, Neil Rimer, co-founder and partner of Index Ventures, adds, ‘auxmoney has already done a terrific job of building awareness and attracting a large customer base in Germany.
‘On the back of auxmoney’s recent platform upgrades, which further improve the company’s services to both borrowers and lenders, we expect auxmoney to become a vital alternative to traditional bank loans in Germany.’
