German venture capital (VC) firm Global Founders Capital and Luxembourg's Redline Capital Management announced that they have invested €6.1 million ($8.3 million) in British startup Iwoca. Previous investors Talis Capital and Beyond Digital Media also participated in the funding round, according to VentureBeat.
Iwoca is a company that provides short-term loans to e-commerce services in the UK. The startup plans to use the fresh injection of capital for its growth and expansion the the UK and Europe. Iwoca was launched in 2012, the report detailed.
This is the fifth investment announced by Global Founders after it was launched in early 2013. The VC firm also holds interests in Europe-based startups Kreditech, Girl Meets Dress, Lingoda, and Videdressing. The fund is headed by Delivery Hero's Fabial Sigel, and Rocket Internet's Mark and Oliver Samwer. Iwoca is a €150-million fund that invests between €100,000 and €10 million in every transaction, the report explained.
Christoph Rieche, Chief Executive Officer of Iwoca, said: "Our highly innovative approach to data-analysis and credit scoring coupled with Oliver Samwer's experience in franchise building puts us in an incredibly strong position to take advantage of the structural change within the business lending industry."
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