After Lendico acquisition: ING is now joining Fincompare
7 of the 10 million euros come from the Netherlands
Fincompare, a company based in Berlin, has been able to generate more than 10 million euros in the course of the A-Series financing - the Dutch bank ING contributed around 7 million euros . After ING took over Lendico in February, it is already the second major investment this year for the Dutch. The remaining capital was contributed by old investors, such as Uniqa, an Austrian insurance company. The financing round also enabled Fintech to increase its growth capital - according to the German company, it currently costs around 14 million euros. A good value. Finally, Fincompare has only been on the market for a year . More than 40 employees offer leasing, factoring and loans for various companies. According to the information provided by Fincompare, more than 2,500 inquiries from customers have already been processed - the total volume would be more than 1 billion euros.
Is the in-house loan offer coming?
The entry of the Dutch shows that ING is definitely one of the banks looking for a close alliance with the extremely young providers from the world of start-ups. It does not matter to the Dutch, whether it is the corporate or private customer business. " The participation enables us to expand our presence in the SME segment ", says ING CEO Benoit Legrand. "Financial scene" was the opinion, there would be also another motivation behind the participation: " one can assume that the bank already works on in-house digital loan offers for the enterprises ." In the end, that's not unrealistic because of the Lendico acquisition. Thus, Fincompare could now create another distribution channel, provided that ING would offer a new SME finance product. However, the market opportunities for such innovations are uncertain. There are still plenty of companies that shy away from such projects - you do not want to replace the personal contact with the house bank by the neutral platform. The process could even lead to a negative selection among the borrowers - those who have no bank access now can automatically claim the platform solution for themselves. This was one of the main reasons why Fintech Fintura stopped working a few months ago. Allegedly there were too few investors for a follow-up financing.
How will Fincompare go on?
Stephan Heller, CEO of Fincompare, believes it is important for the company to remain independent. How to proceed with Fincompare? The 32-year-old boss has very clear ideas and plans here: " The strategic vision is to make Fincompare a digital house bank for small and medium-sized businesses ." In addition, Heller assume that it will come soon to the tripartite division of the SME financing market. "Sums of up to € 150,000 or € 250,000 will probably be automated, and between € 250,000 and € 3 million it will probably come to semi-automation, and only when it comes to more than € 3 million will the 'Old Business' return. in the game."
Well-known investors and partners
Fincompare not only involves the Dutch bank ING - well-known companies, all from the financial sector, are part of the program: Stefan Wintels, Citibank Germany's CEO, is just as much a partner and investor as Alex Graubner-Müller (Kreditech ) and Carlo Kölzer (360T).