Consumer Lending: Pagantis Raises €65 Million, Aims for European Reach

FACTS

• The Spanish e-commerce financing platform Pagantis announces a €65 million Series B round table: the largest funding round to date in the Spanish FinTech industry.

• Main investors: Prime Ventures, SPF Investment Management and Rinkelberg Capital Group.
• This launch is intended to expand their e-commerce platform Pagantis beyond Spain, especially in Italy, France and Portugal. This platform is known as “Paga + Tarde” in Spain. The local e-commerce market witnessed a strong growth since 2011.
• This platform lets customers pay for goods and services in monthly instalments based on a fully automated process. They provide e-commerce sites with an easy to integrate payment module allowing them to feature consumer credit services.
• How it works:
  • Pagantis bets on an omnichannel financing with instant online approval based on a proprietary scoring algorithm.
  • This algorithm assesses fraud and credit risks using Big Data and Machine Learning techniques.
  • Borrowed amount: up to €6,000
  • Repayment: up to 24 months

CHALLENGES

• Expand the commercial reach of their e-commerce financing platform. After pioneering in Spain, they expand their range of services to other European countries. They won support from merchants, international partners and investors.
• Achieve pan-European scale. Large-scale e-merchants have to be provided with a way to feature payment facilities in several European countries. This accounts for the FinTech’s interest in rolling out their offer in Southern Europe.

MARKET PERSPECTIVE

• By way of further aiming for international reach, Pagantis is also scaling up their team which already includes over 100 employees.
• This start-up already raised €15 million in 2015.
• Meanwhile, they have been granted approval from Italian authorities to operate in Italy, and opened an office in Milan.
• Plans for 2019: craft a mobile-based in-store financing offer.