German fintech Monedo taken down by coronavirus

Monedo, once the largest German startup in the fintech industry backed by the likes of billionaire Peter Thiel and media giant Naspers, has filed for bankruptcy after the impact of the pandemic took its toll on the company.

Founded in 2012, Monedo had specialised in microcredit loans but had struggled to find the right business model and had changed strategy earlier this year to focus on using algorithms to grant loans. The company also changed its name at this point — it was previously known as Kreditech. 

The company’s fate could signal trouble for the wider industry, and in particular other digital credit providers who may be particularly vulnerable.

Read more: Sifted