Fintech Sector Wins Big Again as Capitec Injects €21 M in Creamfinance

Left to right - Patrick Koeck, Matiss Ansviesulis and Davis Barons

Recently, Creamfinance made an announcement that is of significance to the entire fintech industry. Talking during the announcement, Matiss Ansviesulis, Co-Founder & CEO of Creamfinance, disclosed that the just concluded €21 million deal was part of a series B financing with Capitec Bank Holdings Limited. The substantial investment comes shortly after a series A deal with Flint Capital, an international VC fund that saw the VC invest €5 million in Creamfinance.

The substantial investment in just one fintech company comes as a confirmation to what has been previously predicted. In their global analysis of investment in fintech dated the 21st of February 2017, KPMG observed that although fintech investments had fallen drastically in 2016, the PSD2 in Europe was set to attract more investment into the European fintech sector.

If you are just wondering why Capitec chose to invest in Creamfinance, you need to know a few facts about the two companies.

Key Facts About Capitec

Capitec Bank Holdings Limited is the parent company of Capitec Bank that is remembered for its role in revolutionizing banking in South Africa. Capitec Bank Holdings Limited is publicly listed in South African Stock Exchange. The bank is keen on embracing technology and innovation. In fact, it offers internet banking among other technology powered services.

Key Facts About Creamfinance

Founded in 2012 and with its headquarters in Warsaw, Poland. Creamfinance has grown and expanded rapidly. Currently, it operates in six countries. Significantly, the company has distinguished itself as a leader in the provision of personal finance in Europe. The company does everything online and this has enabled it to meet the needs of its customers while at the same time maintaining profitability.

According to Gerrie Fourie, CEO of Capitec, Creamfinance’s business model and  focus on Smart Data Scoring allows new countries to be entered efficiently and swiftly without the need for substantial local infrastructural investment.

Since its establishment, Creamfinance has been ranked 3rd-5th positions in all its areas of operation. Moreover, Inc. 5000 has once ranked it as the second fastest growing company in Europe. The company capitalizes on machine learning capabilities and advanced smart data algorithms to evaluate and score. The result is the provision of highly customized, speedy and reliable personal loan application process.

In fact, one of the company’s main objectives is to become a global provider of one-click loans to its customers. As such, Creamfinance intends to use the investment money to continue its expansion as well as in the facilitation of its mission to make finance more accessible to consumers worldwide.

You now see why Capitec had to invest in Creamfinance. Apart from the fintech’s attractive business model, both companies have some points of convergence as far as their interests are concerned. For instance, while Creamfinance is a fintech company, Capitec is keen to integrate financial technology in its operations.

It suffices to say that fintech startups have something to learn from Creamfinance in terms of structuring their business models if they are to attract considerable investments.

Capitec investment in Creamfinance is significant for financial service providers and consumers as it confirms the cooperation between fintechs and banks that is gaining momentum after years of perceived rivalry. 

Angela Scott-Briggs: Editor : Over 15 Years Experience of Working in the Business Sector | Interested in Innovations in Business and Technology .