Capitalbox, a Swedish fintech lender working throughout Europe, has acquired the Netherlands division of Dutch small and medium-sized enterprise (SME) lender Spotcap, which additionally operates within the UK and Spain.
The deal is a part of Capitalbox’s ongoing European growth. Spotcap, which has a presence in Australia and New Zealand too, was considered one of Capitalbox’s largest direct rivals within the Netherlands for market share.
Spotcap is “some of the recognised on-line lenders within the Dutch market,” Capitalbox says in an announcement.
The acquirer additionally claims sturdy footholds in its residence nation Sweden, in addition to Finland, Denmark, the UK, and Lithuania. It’s owned by Ferratum Group, a Finnish monetary companies supplier.
Digging its heels within the Netherlands
CapitalBox points loans to SMEs of as much as €350,000 for as much as 36 months. Companies can get entry to finance through its platform as rapidly as the identical day.
The choice lender claims there are some 1.1 million SMEs within the Netherlands. However in line with Statista, there have been lower than half this quantity in 2019 – 443,842.
The hope is that Spotcap NL’s present distribution channels will give CapitalBox higher entry to a brand new section – a house to bigger corporations which nonetheless go underserved by incumbent banks.
The acquirer additionally cites the acquired arm’s market data, present community, and its underwriting expertise as causes for the deal.
“Spotcap has constructed an amazing enterprise within the Netherlands,” says Scott Donnelly, CapitalBox’s CEO. “By merging our data and the groups, we can be stronger than ever and do a greater job financing SMEs who wish to develop.”
Donnelly explains that within the EU, round 98% of corporations have lower than 50 workers, and these are the enterprise which offer about half of all jobs.
What this implies for Spotcap
For Spotcap, the deal marks its “ultimate step in focusing Spotcap on lending-as-a-service” through its LendSuite proposition. In different phrases, the deal marks its exit from the direct lending market.
That’s in line with its chief government, Jens Woloszczak, and its chief monetary officer (CFO), Christian Müller.
The 2 say this separation from Spotcap NL allows the start-up to focus on the standard of its options and customer support.
“We see CapitalBox as the best acquirer of Spotcap NL to additional develop the enterprise and realise its potential over the approaching years,” says the CEO and CFO.
Spotcap NL will come underneath the CapitalBox title and model, with the deal being sealed “over the approaching months”.
Launched as a direct lender again in 2014, Spotcap has since lent greater than €500 million in credit score traces throughout 5 markets.
However since 2018, Spotcap re-focused its expertise providing in the direction of facilitating monetary establishments’ digital transformations.
The LendSuite providing can work both as an end-to-end resolution, or as a collection of modular parts. These parts can then be built-in into FIs’ present expertise stacks.
Learn subsequent: Curve to launch new credit facility powered by Thought Machine’s Vault