Foundation Capital leads series-B for auxmoney

The fresh capital will be used to facilitate the company's expansion plans by further enhancing its investment platform and making new hires.

The peer-to-peer loan business states part of its growth trajectory will include combining its low process cost and underwriting expertise with the customer reach and low cost of capital enjoyed by banking groups.

According to unquote" data, Index and Union Square invested $12m in the online marketplace in March 2013.

Company
Founded in 2007 by Raffael Johnen, Philipp Kriependorf and Philip Kamp, the auxmoney platform enable private borrowers to secure personal loans funded by private and institutional investors.

The company offers an alternative to traditional bank loans by offering more attractive rates to borrowers by using a proprietary scoring system, combining consumer scoring knowledge with online social and behavioural data.

The company has so far facilitated almost 20,000 loans worth $140m to private borrowers, over 50% of which were issued in the last 12 months. Headquartered in Düsseldorf, auxmoney generated revenues of approximately €2.53m in 2012. Approximately 60 people are employed by the online marketplace.

People
Raffael Johnen is CEO of auxmoney. Charles Moldow is general partner at Foundation Capital. Gabriel Matuschka is principal at Partech. John Buttrick is partner at Union Square.

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• DACH
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• Index Ventures