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ID FINANCE: THE RISE OF ONLINE LENDING


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Integral service around a transaction
BY : Diego GutiérrezNovember Wed, 2019

ID Finance, empresa Fintech especializada en préstamos online, sells parte de sus participaciones sociales a varios inversores a través de marketplace Crowdcube investment fund, worth €5.7m.

The great advantages of online loans are the ability to process the application without going to a branch, and sometimes even the possibility of obtaining cheaper financing than usual. Although the latter is not always a reality.

In today's digitised world, they are playing an increasingly important role in corporate finance.

ID FINANCE

ID FINANCE

ID Finance uses machine learning and data science to offer financial services to those who are unable to obtain a loan through traditional banking institutions..

In fact, its challenge is to empower people with restricted access to banking services to promote their financial inclusion.

Founded in 2012, it moved its headquarters from Russia to Barcelona in 2016.

It currently employs 320 staff, has more than 3 million users, and acquires 40,000 new users every week.

This 2019, it expects to close the year with a turnover of €90m, double what it earned in 2018.

Este mismo mes de noviembre, la compañía ha vendido parte de sus participaciones sociales a más 1.200 nuevos socios de 62 países, en una ronda valorada en 5.7M€.

Each of them has invested an average of 4,700 euros to boost the firm's growth.

SUCCESS OF EQUITY CROWFUNDING

This is the largest equity crowdfunding transaction by a Spanish company.

It is a method of crowdfunding which, unlike the crowdfunding The traditional approach opens the door for patrons to hold equity stakes in the company.

ID Finance's figure represents a new milestone in the field of alternative financing in Spain, as it is the first transaction to exceed the €5m threshold.

These figures show that Crowdcube can aspire to become a Europe-wide capital market, based on a true digitisation of start-up and SME capital raising.

In addition, it is worth noting that, in the third quarter of 2019, 38% of the investment channelled through this channel went to companies in the fintech sector.

NATIONAL AND INTERNATIONAL EXPANSION

ID Finance's growth plan has the Spanish market and the Latin American market, especially Brazil and Mexico, as its two main growth focuses.

Algunas de las firmas que ya están invirtiendo en empresas del sector en la región son Goldman Sachs, Morgan Stanley, Victory Park Capital, Santander InnoVentures, Softbank y Tencent.

OTHER RELEVANT OPERATIONS IN THE SECTOR

HOUSERS

Housers is a crowdfunding platform, which allows people to invest in real estate projects..

Founded in 2015 and headquartered in Madrid, the company has a total of 4.5M$ raised in the sale of its shares in 6 rounds of financing, the last one in July this year.

MITTO

Mitto is much more than a simple debit card for young people aged between 14 and 30, the so-called "Generation Z".

It is a modern, easy and advantageous payment system..

That's why, last September, it was able to capture 2M€ in a seed round to continue its growth.

Our diferentiation

Market Research Technology
Our team of market analysis specialists is continuously analyzing the investments of the most active markets in the industry in order to unceasingly contribute ideas of the current market situation and identify the most relevant trends for senior management. We integrate the most relevant sources of information which allows us to discover the most interesting companies for venture capital and similarly helps us to identify the investors with the highest probability of involvement in an M&A process to ensure the success of our sell-side operations.

The reports and deductions of our advisors provide a broad view of the sector, both geographically and from the complementary or adjacent markets perspective.
Technology Data Analytics
for M&A
Advanced data anlytics is a weapon". Intelfin is an artificial intelligence tool we use for investing and creating value in SMEs through competitive analytics and the enterprise environment.

IntelFin consists of a cognitive system, which, through the application of advanced analytical technologies, facilitates the automation of investment and financing decisions in the field of non-listed companies and especially SMEs in high-growth sectors.

The information related to these companies is characterized by their lack of transparency and heterogeneity; thus, it is necessary to develop an advanced analysis which is as much predictive as prescriptive and is developed in a natural language custom, suitable to obtain greater clarity and knowledge of the investment scope.

The IntelFin system focuses especially on analyzing the variables that define and influence the competitive environment of a sector and the positioning of a company, analyzing their influence on future value creation. Therefore, IntelFin supports strategic decision-making to senior management by resolving questions such as:

¿What are my competitors' priorities, strategies and expansion plans? Who's my competition? Which competitor is most likely to grow at a higher rate?
Which areas of activity/business models will receive the most investment? Which sectors are most attractive to investors?
Which companies are going to experience the most growth in the near future? Which companies are most likely to receive investment or be acquired?
Training Methodology
We have developed training programs in an innovative set-up which guarantees our teams the acquisition of technical competences both in the field of corporate finance and in the field of psychology, that is much needed when it comes to negotiation processes.

We have a culture of continuous improvement of our processes, closely related to the use of information systems that allow the enhancement of internal communication between our teams, as well as external communication with our customers. Hence, we extend best practices identified internally in an efficient and rapid manner among our members.

Are you one of those who prefer to be well informed when making decisions?

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