Given the recent market landscape, which has been fraught with geopolitical tensions, rampant inflation, interest rate hikes, and generally volatile conditions, Estateguru management decided to increase the capital reserves of the company at the start 2023, and raised additional capital from its founders, existing shareholders and investors. The company is finalising the latest round in March, as it prepares for additional institutional investment in the form of credit lines that will require corporate capital, an increased runway and reserves.
Since its launch in 2013, Estateguru has raised a cumulative amount of over €9M from angel investors, founders, Seedrs, and institutions. This relatively low amount (when compared with other market players) of raised capital has been strategically invested with the company’s next phases of growth in mind. Estateguru has always tried to keep profitability close by growing our revenues and investing profits back into the business.
In 2022 we invested heavily into technology and into preparing for expansion. The flexibility of our business model has allowed us to switch our focus back to profitable growth. We expect that In 2023, firms that have invested in cutting edge technology solutions, which allow for the automation and management of increasingly data-centric processes, transactions, workflows and relationships, will be extremely well positioned for growth and success. Purpose-built platform technologies, that have demonstrated an ability to adapt to vagaries in the market, are especially attractive to venture capitalists.
After a profitable month in February, it seems fair to say that Estateguru’s transition from a focus on hyper-growth to sustainable profitable growth is proving a success. We are focusing on core markets during the current cycle and this has also allowed us to review and reduce costs when compared to last year. We continue to monitor costs, rationalise the business, and tighten credit policies and origination processes to establish a more sustainable, profitable business that can withstand turbulent market conditions, while servicing the investment needs of our investor clients and the funding needs of our borrowers.