Alternative lending continues to grow rapidly across Europe and so does EstateGuru’s business volumes. EstateGuru financed loans in the amount of €120,2M in 2020 which is a 50% increase when compared to 2019 (€80,3M). The average month on month growth in loan origination was 60% compared to the previous year. All indications are that this growth will continue as the business model gains further mainstream acceptance and the need for capital grows in the SME sector.
„The COVID-crisis is boosting innovation and change and we see that doing things digitally is becoming the new normal. It also means that business models like EstateGuru’s will be enhanced and taken into the crowds. People are more open than ever to fintechs and new business models, and this forms part of a global trend. Our loan volumes increased 102,71% in Q4 compared to the same period last year (from €23 818 226 to €48 281 774) and our revenues increased 133,43% (from €774 036 to €1 806 837). We also witnessed a solid inflow of new investors, a 23,63% increase compared to Q4 2019 and 53% increase when comparing the whole year (20 290 new investors in 2019 and 31 038 investors in 2020). The biggest number of new investors came from Germany which is also our focus market for 2021. We opened our office in Berlin in November which was one of the major highlights of Q4. By opening this office, we want to contribute to the development of the alternative financing industry and become the first choice for borrowers and investors in Germany“, commented Marek Pärtel, co-founder and CEO of EstateGuru.
8968 new investors joined EstateGuru during Q4 2020 compared to 7254 during Q4 2019. The biggest number of new investors came from Germany, with 2598. The next largest groups are Estonians, Italians, Lithuanians, Dutch, Spanish, and Latvians with investors from another 99 other countries making up the full total. Our investors earned €2,4M of interest during Q4 2020 versus €1,8M in Q4 2019. 244 projects were financed in the amount of €48,3M during Q4 2020 compared to 180 projects in the amount of €23,8M in Q4 2019. The average return on paid back loans in 2020 was 10,95%.
“I’m very proud of the stable quality of our credit portfolio. Due to the second wave of coronavirus, we witnessed a slight increase in delays of repayments, but in general, the loan portfolio is healthy and we don’t expect any significant negative change in the borrower payment behaviour”, added Pärtel.
“All in all, 2020 paved the way well for 2021. We are as ambitious as ever on executing our road map to become the biggest real estate financing platform in Europe by 2025. This is a plan we also shared during our successful crowdfunding campaign at Seedrs in Spring last year. We have delivered on our promises – Finland and Germany have both successfully launched, the technology roadmap has been enhanced and we’ve just hired a Director of Capital Markets who will take the lead in developing this area and driving institutional investments. As we believe in the power of the crowd and alternative financing, we are considering a second round of fundraising in the near future to leverage our achievements and to take us to the new heights”, Pärtel commented on the plans for 2021.