NEO Finance, a Lithuania-based peer-to-peer lending platform, has successfully secured its initial €200,000 equity crowdfunding target on Seedrs. The campaign was launched last month and has attracted nearly 340 investors so far.
As previously reported, NEO Finance was founded in 2015 and claims to be the largest P2P lending platform in Lithuania and is operating under the name, Paskolų klubas. The lender noted it offers investors the possibility to invest in the loans of Lithuanian consumer credit receivers and since launching, its investors have had solid returns of 12-18%. NEO Finance also reported it is the first P2P platform in Lithuania to have reached constant €1 million monthly issues.
“NEO Finance offers Buyback and Provision fund services, which minimises risk for lenders. Moreover, our partnership with Legal Balance enables the platform’s users to experience the benefits of 8+ years of default loans recovery know-how.”
Neo Finance reported that it currently has 5,400 active lenders and 47,000 registered borrowers. The lending platform has had €21.7 million in loans financed. Funds from the Seedrs round will be used for the following:
- 70% for marketing and sales: Increasing advertising budget so we can attract more borrowers and on the other hand execute PR and affiliate strategy to attract more lenders.
- 30% for IT development: The lender noted it has developed its own state-of-the-art platform, with advanced usability and functionality for lenders and borrowers, integration with social security, banking, credit bureau, SEPA, and other systems. NEO Finance reported its IT platform is constantly developed according to user experience and often have additional functionalities added.
The funding round is set to close later this fall.
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