Klear series A capital raise

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Klear raises 800 K EUR from NV3

7 June 2021 / 4 min.

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To scale BIG.

Since its launch as the first Bulgarian Peer-to-Peer lending platform, Klear has succeeded in establishing itself as the one unique player with the potential to revolutionize the lending industry in Bulgaria. 2 facts to illustrate that: the credit risk is at the same low level as before the start of the pandemic and the average notation given by our customers in the recent satisfaction survey is 9.1.

That’s great and we are ready for much more!

To be financially sustainable in a model based on the sharing economy where Klear takes a thin cut, we need to scale. We need to get 2 times bigger, then 5 times, then 10 times, …

It’s to achieve this ambition that we raise 800 K EUR.

Who is NV3 Fund?

It’s a Bulgarian fund managed by a team of experienced and successful venture capital specialists. They have pioneered this activity in the Region, invested in many technology-driven startups, helped them to grow and achieve success.

The activities of the fund are co-financed by the European Regional Development Fund under the Operational Program “Innovation and Competitiveness 2014-2020”, managed by the Fund of Funds in Bulgaria.

What do they get for 800 K EUR?

They become a minority shareholder owning slightly less than ¼ of the company by subscribing to newly issued series A preferred shares, the usual round for a promising company that needs resources to go to the next level in terms of business size.

“Preferred shares” means that the new investor has some specific rights in exchange for the money he brings, subscribing new shares at a price higher than the previous investors. As an example, they get a seat in the Board of Directors of the company.

What happens to the existing shareholders?

They stay onboard, happier of course after the deal. They keep the same number of shares they had before, simply their share percentage decrease as new shares are issued and only subscribed by the Fund. And their participation in value jumps significantly after this round.

Why is NV3 a good match for Klear?

Beyond the money and the invaluable expertise the team brings, what is very interesting for Klear is the potential business synergies with other investees of the Fund, especially the ones which belong to the FinTech and E-commerce ecosystems.

How will Klear use these funds?

The main part will be dedicated to the execution of our Marketing and Communication strategy. That’s nice to have a great product and delighted customers. But we need the mass. That requires well thought and regular communications to let people know about us and be convinced that yes, it’s true, there is a fair alternative to banks to find a low-interest personal loan online or an option to get a good return on your savings.

We will also use part of the funds to develop the platform and its technology, and to add new products.

What’s going to change if I’m a borrower?

No fundamental change should be expected. We’ll stick to our values to provide the best pricing and a superior online user experience.

Hopefully, we’ll continue to improve the simplicity of the credit application as well as the self-service zone where our customers can easily manage online their loans.

Maybe something we could expect is that thanks to the size, we could progressively increase the maximum amount of 30 000 BGN, at least on our loyal customers. 

This limit was set up because it takes time for Klear to sell a big loan to investors. When we grow, many more investors will be available to purchase a piece of a loan. That will decrease the time to fully sell a loan and therefore we could progressively increase this maximum amount.

What’s going to change if I’m an investor?

Here also, no fundamental change on the nature of the investments. Of course, we’ll make some improvements from the list of wishes collected among our clients.

We’ll also try to build an option where it’s simpler to start investing with Klear, something that could be set up in a few clicks by everyone who wants to make something out of his savings which are now losing value while staying on the bank account…

What is your main target for the next 3 years?

To achieve a 3% market share of the consumer lending market within 3 years.