auxmoney, Germany’s leading online marketplace for peer-to-peer loans, where private consumers can borrow up to €25,000 directly from private and institutional investors, today announced an investment round of $16 million (led by Foundation Capital). The fresh capital will be used for auxmoney’s ambitious expansion plans, by further enhancing the Düsseldorf-based lending and investment platform and expanding the company’s 60-strong team.
Founded in 2007, the company has so far facilitated almost 20,000 loans worth $140 million to private borrowers, over 50% of which were issued in the last 12 months. auxmoney’s growth is fuelled by investors seeking attractive risk-adjusted and predictable returns on their capital, as well as borrowers looking for better rates or alternatives to traditional bank loans.
auxmoney CEO and co-founder Raffael Johnen said the investment marked a tipping-point for peer-to-peer lending in Germany, with the market set to go mainstream. He stated: “With our new partners on board, we are ready to turn crowdlending into an integral and mainstream element of Germany’s consumer finance landscape.”