The capital will be invested into the growth of the business, with a focus on the roll out of Plazo, its flagship financial wellness app, in Spain and Mexico
ID Finance, a Spain-based fintech that specialises in online lending in emerging markets, has announced a €30m investment led by UK-based asset manager Kingsway Capital.
The funding includes both a primary capital infusion and a buyout of shares from the fintech’s early investors.
The capital injection is structured as a convertible loan with a maximum valuation of €235m.
The capital will be invested into the growth of the business, with a focus on the roll out of Plazo, its flagship financial wellness app, in Spain and Mexico.
Founded in 2012, ID Finance has more than 5m unique registered users across Spain and Mexico and uses advanced analytics and machine learning algorithms to provide access to competitive financial services via Plazo.
ID Finance co-founder Boris Batine will assume the role of chief executive officer of Plazo.
Batine said: “I’m very happy to welcome Kingsway, as our strategic partner. Having a new institutional investor on board opens a new horizon to ID Finance.
“I believe this is the beginning of a new chapter for the company, and we are very excited about the prospects of the group.”
Tamir Saeed, managing partner at Kingsway Capital, commented: “We are excited to partner with ID Finance and support their mission to provide access to financial services to underserved consumers in developed and emerging markets.
“ID Finance has a proven track record of using technology and data analytics to create innovative financial products, and we believe they are well-positioned to capture significant market share and drive financial inclusion across Europe and Latin America”.