Private equity group Finstar has acquired an equity stake in finance company Euroloan.
The official release made no mention of the size of the stake, but trumpeted the fact that Finstar is coughing up a €15m funding facility. Euroloan will use the windfall to accelerate the development of its FinTech products and further develop its services. It was also stated that Finstar has the option of further increasing its equity stake to a significant level, although what that level is was not alluded to. Given that there were no details of the original stake, it’s hard to figure out what might be ‘significant’ next time around.
One of Euroloan’s main products is a virtual credit card, one which offers individual revolving credit limits, as well as pricing and repayment plans for each customer, based on an advanced proprietary scoring engine.
Both companies say that they will share expertise and assist each other in strengthening their positions both in terms of their involvement in the FinTech industry and Euroloan’s expansion into North European markets.
Finstar CEO Nick Jordan said: “Over the years Finstar has developed substantial expertise and valuable relationships in the FinTech industry. Euroloan is a rapidly growing FinTech company with impressive technical capabilities, an experienced management team, a unique business model and significant international growth potential. The company matches our strategic focus perfectly and we look forward to contributing to its development and delivering exceptional results.”
Euroloan Chairman Tommi Lindfors said: “The development of a partnership with Finstar is a natural step towards expanding Euroloan’s horizons and taking us to the next level of our development. Finstar is a pioneer in the adoption of innovative, cutting-edge technology which it successfully implements in very competitive financial markets to develop thriving FinTech businesses. Finstar’s financial strength and invaluable experience in the FinTech space will enable Euroloan to focus on further expansion while maintaining its financial stability.”
Finstar might be one to watch, having, in its own words, significantly increased the scale of its investments in financial services companies specializing in consumer finance.