EstateGuru launches in Germany: Fast funding for SMEs, secured investing for everyone 19/11/2020

Berlin, November 19, 2020. EstateGuru, European leader in alternative financing, is launching its business in Germany. The platform specializes in providing easy and fast loans to SMEs looking for short-term credit for real estate developments, bridge loans and business loans. Via the EstateGuru platform, all loans are then offered to private and institutional investors that can choose from projects in eight countries including Finland, Sweden, Estonia, and Germany, starting from as little as 50 euros per investment.

EstateGuru, founded in 2013 in Estonia, has shown dynamic growth over the past years. As of November 16, 2020, the lending platform has funded SMEs with more than 263 million euros worth of loans and paid out over 20 million euros in interests to more than 64,000 investors. The launch in Germany is part of the European growth strategy of EstateGuru, aiming to grow the business to 5 billion euros in financing value per year by 2025.

“Both, entrepreneurs and investors, need new solutions to grow their businesses and income in any market environment. Our dynamic growth has shown that alternative financing, the business model of EstateGuru, is addressing a vital need of SMEs looking to reach the next wave of economic success while offering hand-picked investment opportunities to investors looking to diversify their portfolio”, says Marek Pärtel, Co-Founder and CEO of EstateGuru. “Germany has been on our radar for quite some time as our biggest investor community of 19,000 comes from here and we helped to finance one German project in February this year. By opening our office in Berlin, we want to contribute to the development of the alternative financing industry and become the first choice for borrowers with property-backed projects and investors in Germany and investors in Germany.”

EstateGuru: Alternative financing allows fast funding for SMEs

EstateGuru finances projects which have solid collateral, using first-rank mortgages, to achieve straightforward and secure funding in real estate lending. This model is especially useful for entrepreneurs who struggle with the ‘one-size-fits-all’ policies of banks. Driven by fast and scalable technology, EstateGuru is on a mission to make the EU property finance market more efficient, transparent, and attainable for everyone.

„Alternative finance is gaining popularity in Germany. According to a recent study[1], 84 percent of alternative lenders are expecting the number of originations to increase. EstateGuru will be certainly an attractive option to choose from. And we believe that we can add quality and flexible financing opportunities for SMEs“, says Nicola Picone, Country Head of Germany at EstateGuru. 

EstateGuru: Investment opportunities in first-rank mortgages

For investors, EstateGuru offers short- to mid-term investments in property-backed loans at an average historical annual interest rate of 11 percent. As all loans have a solid collateral, the risk to investors is much lower compared to the usual crowdlending platforms on the market.

With real estate investing starting at 50 euros, it makes the category available to everyone while allowing to build a portfolio, diversified by countries, type of loan, and type of project. On average, three new investment opportunities per day are being published on the platform for investors to choose from, ranging from 25.000 euros to about 5 million euros, with an investment period running from 6 months to 24 months. On average, loans get fully invested within a couple of hours or during a week maximum.

Varengold Bank to provide regulatory umbrella

EstateGuru and Varengold Bank have signed a term sheet for an upcoming fronting service agreement with which the Hamburg-based marketplace lender will provide a regulatory umbrella to enable the launch of EstateGuru’s full-service package in Germany.

„Only two years ago, we were EstateGuru’s first institutional investor. Today, we have faith in their potential to become a key player in the alternative lending industry in Germany. Providing fronting services to EstateGuru is the next logical phase in our partnership and also supports our bank’s goal to become the preferred partner of fintechs and new technology companies that want to innovate the financial industry,“ says Lukas Diehl, Executive Vice President and Head of Marketplace Banking of Varengold Bank. 


[1] Study by AltFi: “State of the market. Alternative Lending” Annual Report 2020, p. 49