EstateGuru witnessed a strong year on year increase in both loan volumes and revenues. Loan volumes increased by 70% in Q1 compared to the same period last year (from €27,2M to €46,2M) and revenues increased 72% (from €0,93M to €1,6M). In March, our investors financed €21,5M worth of loans, which is a new monthly record on our platform. To put that in perspective, during the entire year of 2017, EstateGuru achieved €23M in loan volume.
„Today we can most definitely say that we were the innovators of this industry and started something in 2013 that has become mainstream. More and more spheres of business are discovering that there is tremendous potential to transform and disrupt the status quo using market mechanisms and digitalization. The ongoing Covid-19 situation also forces businesses around the world to accelerate their digital transformation, therefore the number of industries experimenting with these marketplaces will grow exponentially. At EstateGuru, we take it as our noble mission to help the alternative financing industry to flourish, as every person deserves access to financial freedom and all entrepreneurs deserve access to flexible and speedy financing“, commented Marek Pärtel, co-founder and CEO of EstateGuru.
We also witnessed a solid inflow of new investors, at a 30% increase compared to Q1 2020 (8092 new investors in 2020 and 10 496 investors in 2021). The largest number of new investors came from Germany, with 2123. The next largest groups are Estonians, Italians, Lithuanians, Dutch, Spanish, and Portuguese with investors from another 108 other countries making up the total. Our investors earned €2,9M of interest during Q1 2021 versus €2M in Q1 2020. We financed 239 projects in the amount of €46,2M during Q1 2021 compared to 204 projects in the amount of €27,2M in Q1 2020. The average return on repaid loans in Q1 2021 was 10,15%.
“As the industry is growing rapidly, we need to pay a lot of attention to downside protection of our investments in order to remain at the very front of the pack in the alternative financing industry. We know we can only scale up excellence. No aspect of operating is more important than trust and safety of our investors and borrowers. We invest more and more money into our technology and surveillance solutions, as well as our credit models and risk handling automation. EstateGuru’s various monitoring aspects, from users and transactions to reporting, will go through millions of data points daily. We also welcome the imminent arrival of pan-European crowdfunding regulations which will add sufficient and much needed rigorous regulatory, reliability and security standards”, added Pärtel.
“2021 is another year of significant importance for EstateGuru as we are moving towards servicing institutional investors as successfully as we do retail ones. Several flagship projects are being launched in the first half of the year which will provide a major boost for our roadmap. And in order to involve and engage with our retail investors, we are launching a second round of fundraising at Seedrs in May. In addition we continue our geographical expansion and will open two new markets this year“, Pärtel commented on the plans for 2021.