Digital lending platform Auxmoney raises €500m line of credit

Digital bank

The German digital lender has attracted support from several large institutional investors to fund its lending market.

Image source: CFO Daniel Drummer, CEO Raffael Johnen and COO Arie Wilder.

Digital lending platform Auxmoney secured €500 million in funding for new loans.

The Düsseldorf-based firm, founded in 2007, provides a lending market it claims is the largest in Europe.

Auxmoney said the funding, provided by Citi and France-based asset management firm Natix, will be used to invest in consumer loans on its own platform.

Citi had previously lent to Auxmoney from 2021, when the company’s investment managers and Chenavari Investment Managers paid €250 million to the digital lender.

Daniel Drummer, chief financial officer of Auxmoney, said the investment from high profile investors was a sign of “deep trust” in Auxmoney and the appeal of digital lending as an asset class.

CEO Raffael Johnen said the additional strategic partnerships will enable more people across the credit spectrum to borrow at competitive rates, and said they will help Auxmoney support financial inclusion.

Johnen believes that financial inclusion is set to be more important than ever in “the current macroeconomic environment”.

Not including its latest funding, Crunchbase estimates that Auxmoney has raised £3bn to date.

The past year has also seen Auxmoney make many additions to its senior management.

The company appointed Matthias von der Heyde, a former head of Unilever, Barclays and Boston Consulting Group, as chief growth officer in February this year.

The executive is now responsible for the brand and customer lifecycle in the newly created role.

Former Barclaycard Germany CEO Carsten Höltkemeyer also joined Auxmoney as Executive Chairman in February 2021.

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