ID Finance

International financial technology company ID Finance specializes in data science, credit scoring and non-bank lending as an application of risk management expertise. The company develops the brands MoneyMan, AmmoPay and Solva in six countries: Russia, Spain, Kazakhstan, Georgia, Poland and Brazil. R&D center ID Finance is located in Minsk. The founders of the company are ex-top managers of Deutsche bank and Royal Bank of Scotland Alexander Dunaev and Batin Boris.

Performance indicators

2022: Revenue - €170 million, net profit - €7.4 million

At the end of 2022, the fintech holding ID Finance showed a record revenue of €170 million. The increase compared to the previous year was 20%. At the same time, net profit rose by 17%, reaching €7.4 million. A key contribution to improving financial performance was made by the Spanish credit business with revenue of $119 million and net profit of about €10.4 million. The total volume of loans continued to grow, reaching an amount of €340 million, of which €240 million fell on Spain.

History

2023: Raising €30 million of investments

On March 22, 2023, the international fintech company ID Finance, founded in 2012 by Russian entrepreneurs Boris Batin and Alexander Dunaev, announced an investment of €30 million.

ID Finance, based in Spain, will direct the funds received to develop and promote its flagship product Plazo. This is an electronic debit card with an overdraft option. The funding round was led by Britain's Kingsway Capital. The procedure has already been formally approved by the Spanish Council of Ministers following a positive response from the External Investment Authority.

The transaction includes both the initial provision of capital and the repurchase of shares from the company's investors. At the same time, the infusion of funds is structured as a convertible loan with a maximum estimate of €235 million. It is planned to promote Plazo not only in Spain, but also in Mexico. Given the strategic importance of the initiative, Batin will serve as CEO of the Plazo division.

I am very pleased to welcome Kingsway as our strategic partner. The emergence of this investor opens up new horizons for ID Finance. I believe that this event will be a new chapter for the company, and we are very encouraged by the further prospects of the group, "Batin said.[1]

2019

2019: Raising $6.44 million in investments

On November 11, 2019, ID Finance, a company with Russian roots, announced the raising of $6.33 million in funding. The fintech start-up closed its first crowdfunding round on Europe's biggest Crowdcube platform.

The collection of money began on October 16, 2019 and ended on November 10 with a re-subscription of 247%. The funds were provided by a total of 1,223 investors, and the company was valued at $99.25 million. ID Finance sold a 5.76% stake, the average check was $5182.

ID Finance, which has Russian roots, announced the raising of $6.33 million in funding

The company intends to invest in scaling projects (mainly marketing) in Brazil and Mexico. According to co-founder and CEO Boris Batin, the company sees great opportunities for growth in this region (as well as in Spain).

There is a demand for lending services that are not satisfied by existing players, for example, banks, "he said.

According to the World Bank, 61% of Mexico's population (over 135 million people) is cut off from the traditional banking system. In Brazil, the share of such a population is almost 40%.

Russia ID Finance is developing an online term loan service. In MoneyMan 2019, the company became a resident of "."Skolkovo

ID Finance was among the ten largest fintech projects in terms of the amount of funds raised on Crowdcube. This rating also includes such "unicorns" (startups valued by investors at more than $1 billion) as Revolut, Monzo and Curve.

In addition, ID Finance is included in the FT1000 rating of Europe's fastest growing companies, published by the Financial Times.

Thanks to Crowdcube, each person could become a co-owner of ID Finance, while previously only institutional investors (investment funds, banks, venture capital firms) or HNWI (people with income from $1 million to $30 million) could buy a stake in it. ^[2]

Notes

2017

ID Finance raises €10m through Blackmoon platform

International fintech firm ID Finance integrated with streaming securitization platform Blackmoon's loan portfolios earlier in the year. The planned volume of investments through the platform is 10 million euros. A third of the amount of funding has been implemented. The remaining amount will be received by ID Finance in the coming months.

ID Finance has successfully integrated and launched investment deals through the Blackmoon platform. Thanks to online integration and its own machine learning algorithms, Blackmoon processes information about ID Finance loans issued by companies and provides professional investors with the opportunity to acquire rights to loan portfolios via streaming.

If the issued loans satisfy the strategies of investors working with Blackmoon, the system records the fact of sale, the investor's funds are transferred to the lender, and the transaction is considered executed. Thus, ID Finance fixes profits on the securitized portfolio, but continues to serve borrowers who repay loans already in favor of investors who bought the portfolio. At the same time, Blackmoon ensures the implementation of transactions, analysis, accounting and management of the investment process for the investor and the lender.

ID Finance has received a scalable source of funding from professional institutional investors around the world. Currently, the loan portfolios of ID Finance companies from several operating countries - Poland, Georgia and Spain - are taking part in the securitization project . In turn, investors acquiring loan portfolios through Blackmoon receive a better offer on the ratio of return and risk in comparison with traditional investment instruments.

The transaction allows ID Finance to use new sources of financing, since securitizations are a strategic direction for the company in the field of capital raising.

Oleg Seydak, co-founder of Blackmoon FG: "Cooperation with ID Finance will allow us to expand the line of investment products for investors. Blackmoon is extremely careful about the selection of partners on the side of credit institutions, and we are especially pleased with the results of due diligence ID Finance, which allow us to count on the high quality of the portfolios sold. We are confident that the partnership will be successful for all parties and set new quality benchmarks for all participants in the alternative lending market. "