International online direct lender and Point-of-Sale (POS) financing provider Kreditech today announced it is rebranding its name to Monedo, as it looks to further grow its position in the Indian, Polish, Russian and Spanish near-prime lending markets.
While unveiling the rebrand, David Chan, the Chief Executive of Monedo, also announced that the company is on target to achieve a positive Adjusted Operating Cash Flow in the fourth quarter of 2020, while delivering revenues of EUR 43 million in the 2019 financial year.
The company’s rebrand and improved financial position follows 24 months of strategic refocus at Monedo, which included the appointment of a new Chairman, Chief Executive, Chief Financial Officer and Chief Technology Officer. During the period, the company also raised more than EUR 45 million, led by leading tech investors HPE Growth and Runa Capital.
David Chan, Chief Executive of Monedo, said: “Over the past two years we have been working tirelessly to put the new strategy in place. The name change marks the next stage in the fundamental transformation we have been undergoing, as the company moves from a start-up to scale-up fintech.”
“Throughout 2019 we have been focused on successfully transitioning the company back to growth by focusing on improving operational efficiency, risk- and cost-management capabilities, and strengthening our products and services. This focus, combined with solid support from our investors, means we are perfectly positioned to achieve our goals”, he said.
Having rebranded and put its new strategy in place, Monedo is now ready to scale globally in the near-prime customer segment. The company estimates that it has a global target market of approximately EUR 300 billion in consumer credit issuance and it aims to reach EUR 1 billion in revenue by 2025, which will be driven by growth in existing markets where Monedo is present, as well as expansion into new geographies.
The company operates in India, Poland, Russia and Spain, where it has provided over two million loans to circa one million customers.
Kreditech is one of the few examples of a successful, seasoned fintech, operating on an international scale. Founded in 2012, the company combines market-leading tech capabilities and data science, with sound insight into consumer borrowing needs and extensive experience in POS and e-commerce partnerships. It focuses on online lending to customers in the near-prime segment. Instalment loans – the key product – currently constitutes as much as two-thirds of its global portfolio.
“We have a clear vision – to be one of the leading technology-enabled consumer-lending companies; a fintech platform of choice for both individuals and POS and e-commerce partners. The 2018 and 2019 financial results prove that we are well on track to achieve our goals, with profitability as one of the key objectives,” said Chan.
The cornerstone of Monedo’s operations is a unique, differentiated, end-to-end fully automated underwriting process that combines alternative data sources with machine learning. Customers receive offers and payouts 24/7. “Monedo is able to effectively attract and serve customers with a variety of different risk profiles, enabling financial inclusion, while positioning the company at the forefront of development in artificial and decision intelligence” – underlines David Chan.
Monedo employs more than 350 people from over 40 nations across seven countries and is developing its technology in its teams in Germany, Poland, and Thailand. Monedo lends to customers in India, Poland, Russia and Spain and holds a service center in Romania.