Smava raises €57m in debt and equity financing

Eliza Punshi
27 May 2020

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German online loan provider Smava has announced it has raised €57m in growth financing from Kreos Capital and the company's venture capital backers.

The funding consists of a debt facility of €35m provided by Kreos, and a previous funding of €22m in equity, which was raised at the end of 2019 from existing investors Earlybird Venture Capital, Verdane Capital Partners, Vitruvian Partners, and Runa Capital.

The company said in a statement that it had adjusted its cost structures and raised additional capital to be prepared for the effects of the coronavirus pandemic.

The company added that it expected consumer financing behavior to be more cautious in the further course of the year, and that this was already visible in some categories, such as car loans.

The loan broker has raised around $159m in equity financing so far.

Sister publication Mergermarket previously reported that the company's main owners – Vitruvian and Earlybird – have mandated Goldman Sachs and Citi to look into the options of an IPO or a direct stake sale.

The potential IPO value is reportedly estimated at up to $500m.

Previous funding
Earlybird was Smava's first institutional investor; the VC firm led a €4m series-A financing round in May 2007. It was joined by Neuhaus Partners in October 2008 for another €3.17m round and both investors returned alongside Phenomen Ventures for a series-B round of €10.81m in April 2015.

Earlybird, Runa and Verdane took part in a $24m series-C round for Smava in October 2016. Verdane had previously acquired Neuhaus's stake in the business.

In January 2018, Smava closed a $65m series-D investment round led by private equity firm Vitruvian, with participation from other investors including Runa Capital.

Company
Founded in 2005 and based in Berlin, Smava is an online marketplace connecting private borrowers with banks and private investors. It offers instant credit, personal loans and loan comparison. It is present in more than 40 countries.

The startup claims it has originated a loan volume of €8bn to date. Smava employs around 600 people.

People
Smava – Alexander Artopé (CEO, co-founder).
Kreos Capital – Marten Vading (partner).
Verdane Capital Partners – Henrik Aspén (partner).