The Berlin-based fintech company Spotcap is selling its remaining credit business to Finnish competitor Ferratum, according to a press release published on the morning of October 19th. Instead, Spotcap now wants to focus on its B2B business, which is called “Lending as a Service.”
The Berliners had recently celebrated their first tender successes in this area. According to earlier press releases, Spotcap’s white-label platform has been in use at the Austrian Bawag since 2018 and, for the past few months, at the Swiss Cembra Money Bank. According to Spotcap CEO Jens Woloszczak, the B2B business “already accounted for more than 50% of revenues.”
Spotcap was founded in 2014 by Rocket Internet and, according to its own statements, has so far granted SME loans in the amount of a good $531 million (€450 million). At the beginning of 2016, the entry of the Russian Fintech investor Oleg Boyko, who is also involved in other areas in this country, caused a sensation. After that, there was no news worth mentioning about Spotcap.
If you want to find more details about the deal between the fintech company Spotcap and how the German fintech sector was affected by the pandemic, download for free the Born2Invest mobile app. Our team of journalists brings you the latest business news so you can stay on top of the market.
The deal between Spotcap and Ferratum shows that the pandemic has affected the local Fintech industry
According to the 2019 annual report just published in the German Federal Gazette, the cash burn of the Berlin-based “Spotcap Global Services GmbH” last amounted to a good $24.8 million (€21 million) in aggregate. Behind this is another Luxembourg company. A year earlier, 67 employees were working for “Global Services”; in 2018, the average number will be only 55.
The Australian end customer business had already disposed of Spotcap last year. With reference to the Corona crisis, no new business was conducted in the UK. In addition, Spanish business has also been largely scaled back, leaving only the Netherlands as the only remaining core market – which is now going to Ferratum (or Ferratum’s SME brand “CapitalBox”).
The Spotcap Ferratum deal is further proof that the local Fintech industry is being shaken up in the corona crisis, at least in the credit sector.
Other fintech companies that will end their business on the German market or which have financial problems
In March, the Berlin subsidiary of the British heavyweight Funding Circle had already announced that it was discontinuing its new business in Germany. Shortly afterward, the Berlin factoring Finiata also declared that it would no longer accept new business in that country.
At the beginning of September, the Düsseldorf-based market leader Auxmoney sold a majority stake to a US investor.In the same month, the once largest German financial startup, Kreditch (now known as Monedo), slid into insolvency.
In October, Finanz-Szene.de reported, citing Linkedin data, that virtually all German credit fintech companies, with the exception of Billie and Lendico, seem to have shrunk their workforce recently.
The German fintech sector has clearly been affected by the coronavirus pandemic. Some of them have declared insolvency, while others are struggling to cope with the current crisis.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in finanz-szene.de, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
How To Invest and Save For Your Kids
Parents looking to put money aside that will help cover education expenses, consider taking out a savings plan designed for...
How Building Your Personal Brand Can Help You Escape from the Corporate World
Starting a business is always a difficult undertaking, and for many of us, it can be tough to know where...
The TopRanked.io Weekly Digest: What’s Hot in Affiliate Marketing [Week 39]
In this week's TopRanked.io affiliate marketing digest, we check out the latest from Google and highlight two coming updates that...
IVI Increases its Investment in Research to 6 Million
Each of the clinics that make up IVI RMA's worldwide network (more than 65 clinics) is likely to pursue one...
Iveco Group Bets on Green Trucks from Indian Startup Blue Energy Motors
The announcement follows last July's announcement at the Beyond event in Turin, Italy, and the official launch of Blue Energy...
Business2 weeks ago
The TopRanked.io Weekly Digest: What’s Hot in Affiliate Marketing [Week 37]
Business1 week ago
The TopRanked.io Weekly Digest: What’s Hot in Affiliate Marketing [Week 38]
Featured2 weeks ago
Algorand Partners with Bocconi to Establish Algorand Fintech Lab
Business7 days ago
World Football Summit: FIFA World Cup Business Opportunities and Beyond