EstateGuru, an international financial technology company and investment platform, starts operations in Finland in October 2020. Having grown into the largest operator in Europe, EstateGuru flexibly connects funding seekers and investors looking for a return on their capital. EstateGuru, with operations now in eight markets across Europe, launches its full-service offering in Finland for the first time – thus expanding SME financing alternatives alongside conventional bank loans. For investors, EstateGuru offers a low-barrier to entry into the world of real estate investing.
Established in Estonia in 2013, EstateGuru has rapidly risen to a significant position in the international finance sector. Having enabled financing for business projects valued in hundreds of millions euros, the company is the largest operator in alternative financing in the Continental Europe. Due to the latest launch announcement, Finland becomes the 8th market area that include e.g. UK, Germany and Spain.
Compared to the traditional operators in the finance sector, EstateGuru works more flexibly to connect SMEs looking to fund their development and business projects and investors interested in property-backed loans.
„We’ve been actively talking to Finnish entrepreneurs since August 2019 and we’re confident that the Finnish market is ready for a modern operator such as EstateGuru. We wish to bring the benefits of alternative financing to a broader audience and offer a true alternative to the conventional loan market that may often be perceived as stiff and bureaucratic“, commented Matti Vansén, Country Head of Finland, EstateGuru.
In practice EstateGuru serves as an intermediary between the investors and the projects receiving funding. At EstateGuru, borrowers seek short-term property-backed loans in which the investors place their capital. The projects may vary and require financing for e.g. new constructions, real-estate renovations, business development projects or bridge loans.
The market diversifies as demand for financing and investing services increases
The popularity of alternative financing is evident in EstateGuru’s business figures which has provided a solid ground for market expansion. After being established, the company has enabled more than 240 million euros worth of loans in which the average sum for each borrower is just below 140.000 euros. The demand is increasing especially in a segment in which entrepreneurs seeking for an easy, but reliable and tailored funding solution are left outside the scope of conventional service providers.
Marek Pärtel, CEO and Co-Founder of EstateGuru, is confident that alternative financing is a growing global trend in which Finland can be one of the frontrunners. One of the central objectives is to secure sufficient financing for entrepreneurs in the ever-changing circumstances and in different market environments.
“EstateGuru’s objective is to become the largest real estate financing platform in Europe by 2025. We will do so by investing in service quality and transparency. We truly believe that alternative financing and the business model of EstateGuru is designed for the next wave of economic success“, added Marek Pärtel, Co-Founder and CEO of EstateGuru.
“Along with our market expansion, we always look forward to recruiting local experts, since we wish to share the local language together with authorities and our customers. Looking from Estonia, Finland is a natural expansion to us and a significant part of our international business development“, said Pärtel.
Alongside borrowers, EstateGuru serves private investors alike. By investing in property-backed loans, you may enter real-estate investing evenwith a small initial capital of 50 euros, which makes the category available to everyone. According to the Country Head in Finland, Matti Vansén, the investors are attracted by a historical return of 11,68 % which is excellent considering the overall risk level and the current market situtation.
“Launching our services in Finland opens up the opportunity to invest in one of the most sought-after investment classes – real-estate. We do also serve the bigger institutional investors, but at the same time we believe that real-estate investing belongs to everyone. For this demand, we may now offer an easier and more diverse solution“, said Vansén.
Key figures – EstateGuru.co
- Established in 2013.
- Operates in 8 different countries, including Estonia, Latvia, Lithuania, UK, Germany, Spain, Portugal and Finland.
- More than 58.000 investors from 106 markets.
- Enabled more than 1.700 loans with a combined value of over 240M €.
- Investments made through EstateGuru have a combined return of over 18M €.