Marek Pärtel/Estate Guru.
EstateGuru’s growth reaches new heights as it anticipates UK rollout
The European peer-to-peer real estate investment platform says the UK is a core market for its business strategy.
Riding the wave of demand for alternative financing and investment opportunities, Estonian peer-to-peer lending platform for European property, EstateGuru, this week hit half a billion in loans funded since its founding in 2013.
The company claims its growth in recent years has been exponential, reaching a cumulative total value in loans since 2014 of €200m in 2021, and €500m in 2022. EstateGuru reports that it has also accrued over 110,000 investors since its creation.
Marrying-up borrowers in need of financing for property projects, and investors seeking the low-risk, high-returns the company promises, EstateGuru says it aims to make “investing accessible to everyone”. The company connects service providers, SMEs, and investors into a single, digital marketplace with a view to creating a borderless service.
Already operating in a range of European countries, the firm has set its sights on new territories across Europe, with plans to expand into UK, Dutch, Italian and French markets.
Speaking to AltFi, CEO and co-founder, Marek Pärtel said: “The UK market, along with the German market, are so-called foundation markets for our business model and they have the biggest impact on the growth of our platform. On the one hand, they both have huge property markets, and on the other hand the UK, in particular, has the most influential financial industry sector. Institutional investors are firmly in our focus to deliver on our ambitious roadmap which targets financing €5 billion by 2025.”
Pärtel wants EstateGuru to become the biggest real estate financing and investment platform in Europe by 2025, and has been busy bolstering its headcount to keep pace with the company’s growth.
“The timing couldn’t be better. We see the demand for alternative financing solutions grow throughout Europe and especially SME companies looking for professional, reliable financing partners with expertise in the sector,” he said. “Traditional financing is still lagging behind. Digitalisation, different integrations with data sources, and APIs, create so many new opportunities for businesses.”
When asked about his plans for the future, Pärtel said that expansion beyond the European continent is not on the cards for EstateGuru just yet, though the appetite is there.
“We get lots of traction from Asia and the US already, with investors eager to join,” he said. “But we don’t want to lose our focus. Once we’re financing €5 billion yearly in 2025, we will start looking across the world at other continents.”