€4.6m · Other round · Fintech · Tallinn, Estonia
Tallinn-based Creditstar Group has secured a €4.6m hybrid investment from Singapore-based Kilde at a €130m pre-money valuation. The financing is structured as a convertible loan that accrues interest during the holding period and gives Kilde the option to convert into equity. It is Creditstar’s first external equity-linked investment. FinTech Global
The transaction extends an existing funding relationship. Kilde had previously provided Creditstar with €18.4m in credit facilities, while the group has historically funded growth through retained earnings, shareholder capital and debt instruments. Creditstar says the new capital will support product development, including a credit-card launch in Estonia before expansion into other European markets. Creditstar · FinTech Global
Hybrid capital widens the funding stack
Creditstar provides digital consumer credit through regulated businesses in the UK and seven EU markets. It also operates Monefit SmartSaver, an investment product available across 31 European countries that channels investor funds into the group’s consumer-loan portfolio. Its February 2026 company profile describes a platform built around automated credit decisions, local bureau and payment integrations, and compliance controls across multiple jurisdictions. Creditstar company profile
For a lender, capital structure is part of the product engine. More funding supports a larger loan book, but relying too heavily on one instrument can expose growth to refinancing conditions or maturity concentrations. A convertible loan gives Creditstar interest-bearing capital now while leaving Kilde an equity option later. That makes the deal more flexible than ordinary debt, without presenting it as a completed equity sale.
The relationship also gives Kilde a different view from a first-time investor. Its earlier credit facilities exposed it to Creditstar’s repayment and portfolio performance before the equity-linked commitment. Kilde said the decision reflected the group’s operational execution, credit discipline and product plans. The commercial test now moves from balance-sheet access to deployment: the planned card must create more frequent customer use without weakening underwriting quality.
Product growth follows balance-sheet scale
Creditstar reported €13.5m in audited net profit for 2025, €111m in interest income and a €482m loan book, according to FinTech Global. The group’s own site now reports more than 1.7m registered customer accounts across eight lending markets and €545.2m in total assets at year-end 2025. Those figures show why the financing is better understood as an expansion of an established funding stack than a conventional startup equity round. Creditstar
Sources checked:
Creditstar · FinTech Global · Creditstar company profile · Tech.eu Funding Explorer
