European consumer credit fintech Creditstar Group has received backing from Singapore-based private credit platform Kilde through a €4.6m (£3.9m) hybrid equity investment.

According to Tallinn-headquartered Creditstar, the investment was made at a €130m pre-money valuation and is structured as a convertible loan, with the option to convert into equity shares.

Read more: Creditstar secures additional $10m capital facility from Kilde

The financing, which marks Creditstar’s first external equity-linked investment since its founding in 2006, will support the firm’s next phase of product expansion, including its credit card in Estonia, which is planned for a wider launch later in 2026.

“Bringing in equity-linked capital from an existing funding partner is a meaningful signal of confidence in our business, team and the next stage of our growth,” said Aaro Sosaar, founder and chief executive of Creditstar Group.

The latest investment follows Kilde, which connects family offices, funds and accredited investors with private credit opportunities, providing Creditstar with financing facilities totalling €18.4m.

Read more: Kilde raises $1.5m to scale private credit investment platform

Creditstar provides consumer credit through locally regulated entities in the UK and seven European Union markets. It also operates Monefit SmartSaver, a digital investment platform available in 31 European countries.

Read more: Creditstar Group sees annual profit drop to €7.3m citing move to IFRS