auxmoney, Germany’s leading online marketplace for peer-to-peer loans, where private consumers can borrow up to €25K directly from private and institutional investors, today announced an investment round of $16 million, led by Foundation Capital (Update – May 2023: The startup seems to be no longer in business under this website, and we therefore deactivated the original link).
This fresh capital will be used for auxmoney’s ambitious expansion plans. In particular, the funding will be put towards further enhancing the Düsseldorf-based lending and investment platform, and expanding the company’s 60-person-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.”
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