PayU adds instant lending to network through Kreditech investment
Consumers throughout Europe will have an opportunity to obtain an instant online loan through credit checks and enrollment at an e-commerce point-of-sale through an investment German startup Kreditech has secured from PayU.
Kreditech, a Hamburg-based online lender, has secured an investment of about $130 million from PayU, which targets global growth and emerging markets with its online payment solutions and processing.
The deal gives Holland-based PayU a minority stake in Kreditech, saying it builds on a successful year-long pilot program in Poland which saw more than 10 million euros in instant credit issued to consumers at the point-of-sale.
Under the agreement, Kreditech will deliver its artificial intelligence and machine-learning credit underwriting and loan management technology to PayU’s network of 300,000 merchants.
“In the past year, we have become the leading corporate venture capital investor in fintech, investing more than 245 million euros around the world," Laurent le Moal, CEO at PayU, said in a May 10 press release. "This latest investment in Kreditech fits perfectly with this vision.”
PayU is the e-payment unit of media company Naspers, with operation in 16 growth and emerging markets worldwide. The company joins JC Flowers, Varde, Blumberg Capital, HPE, Peter Thiel, Rakuten and the World Bank’s IFC as an investor in Kreditech.