Estateguru sees lending rise by 9% in first quarter

By Amelia Isaacs on Wednesday 27 April 2022

Alternative Lending

The lender has now financed more than €555m in loans to date.

Estateguru sees lending rise by 9% in first quarter
Image source: Ross Gandy & Marek Pärtel/Estateguru.

With a strong start to the year, Estateguru saw a nine per cent rise in lending in Q1 2022 compared to the previous year.

The property investment and financing platform’s total amount of financed loans now sits at more than €555m after it financed a total of €50.3m loans in Q1.

The annual growth for the Estonian-based fintech was also reflected in an increase in year-on-year revenue, which increased by 27 per cent from Q1 2021 to Q1 2022.

Despite a slight dip from February to March this year – €17.3m to  €16.7m – the total amount still surpassed the same period last year.

“The figures we have seen in March, and indeed the whole of Q1, are promising and set us on a good path for achieving our ambitious growth target to triple in size this year,” Estateguru co-founder and chairman Marek Pärtel said.

“Similarly, strong debt management across the board, particularly in Estonia, has reduced the default rate to 5% to bring it in line with our long-term targets.”

The fintech also added 4000 new investors in March, bringing the Q1 total to 16,300, showing a demand for alternative lending platforms across Europe.

Estateguru’s growth follows the company’s launch in the UK and partnership with Raisin Bank to launch in Germany earlier this year.

The company also brought on Judith Tan as head of capital markets earlier this year, hoping to continue this growth trajectory with a focus on providing institutional investors with access to the European SME property lending market, estimated to be worth €400bn.

“Hopefully, with an increased focus on institutional investment over the next few months, we’ll see more growth in the coming months and can help even more SMEs take advantage of alternative lending options – currently still a mostly untapped opportunity,” Pärtel added.

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