Barcelona-based ID Finance, a fintech startup that operates in Europe and Latin America, saw revenue growth of over 100% in the first nine months of 2019, and is on track to double its revenues to €90 million revenue this year. We interviewed ID Finance’s co-founder and CEO Boris Batin back in 2018.
The data science, credit scoring and digital finance company is now planning its first equity crowdfunding round via Crowdcube, with a target of €300 million in revenues within two years.
ID Finance’s risk management system uses machine learning and advanced data science techniques to provide competitive financial services to the underbanked.
The company has operations in Spain, Brazil and Mexico – markets characterised by sizeable underbanked populations and high mobile penetration. According to the World Bank 61% of Mexico’s population is excluded from the traditional banking system, while 40% of Brazil’s population of 207 million are underbanked.
ID Finance has achieved strong revenue growth while at the same time decreasing customer acquisition costs. The company is profitable in Spain and has achieved operational profitability in Mexico. It now has over three million users with over 40,000 new users joining each week. Borrowers can access loans online and in real-time via its Moneyman and Plazo brands.
“At the core of our business is state-of-the-art AI and data science technology which significantly increases our risk assessment efficiency,” said Boris Batin, CEO and co-founder at ID Finance. “We also now have finely tuned unit economics and are ready to scale.”
ID Finance is now planning to raise additional funds via equity crowdfunding platform Crowdcube and is inviting existing investors and clients to invest. The investment amount is limited and priority access will be given to those who pre-register on its website.
“We continue to see very considerable opportunity both in Spain and Latam, where there is a deep structural demand for credit that is not being met by incumbents,” said Boris Batin, CEO and co-founder at ID Finance. “Our upcoming equity crowdfunding round is a unique opportunity for retail investors to gain exposure to one of the world’s most exciting regions for fintech.”
ID Finance already employs over 320 staff at its Barcelona headquarters. It has an IT team of 186 including 39 staff working in its risk and data science teams. ID Finance is targeting €1 billion in loans issued and over €300 million of revenue within the next two years, with the goal of becoming the number one digital lending platform in Hispanic and Latino markets.
Euronext, owner of the Paris Stock Exchange, recently selected ID Finance for its IPO program. The TechShare program is designed for technology companies and helps to prepare them for potential entry into the stock exchange.
Brazil has an estimated revenue pool of $24 billion for fintech companies over the next 10 years, with payments, lending and personal finance the most promising segments according to Goldman Sachs. Meanwhile Finnovista, a fintech startup accelerator, has predicted that fintechs could take up to 30 per cent of the Mexican banking market over the next decade.
ID Finance was formally split from its operations in Russia, the CIS region and Eastern Europe (which has became IDF Eurasia) last year.