German fintech company auxmoney has raked in €500m ($589m) funding round to start buying loans on its own online platform.

The proprietary investment was facilitated by the French banking group BNP Paribas, as part of a long-term partnership.

Under this partnership, auxmoney will acquire the loans originated on its own marketplace for the first time.

The company runs an online marketplace connecting individual borrowers with private investors in Germany.

auxmoney did not divulge how much of the total financing is being provided by BNP Paribas.

However, the fintech firm said that it will invest up to €500m into the same loan product, on equal terms with other marketplace investors.

The latest investment comes after auxmoney raised €150m ($176m) in a funding round led by Centerbridge Partners, in September 2020.

BNP Paribas Europe head of ABS financing Manish Chandra said: “The strength of auxmoney’s origination platform, underpinned by a robust and digital credit scoring model, has allowed it to consistently provide credit to consumers and self-employed in Germany over a number of years including through this most recent crisis.

“We are excited to cooperate with one of the leading European fintechs and look forward to the partnership with auxmoney and its new majority shareholder Centerbridge.”

auxmoney, through its risk models and digital processes, provides pre-approved customers with access to credit.

auxmoney CEO and co-founder of Raffael Johnen said: “With this step, we are further matching our interests with those of our marketplace investors. This alignment is a major quality seal underpinning our growth trajectory. We are setting auxmoney up to originate in the billions.”