Mintos, a marketplace for investing in loans that reports over 340 000 investors from 63 countries, is planning a securities offering on Crowdcube later this month. According to a release, Mintos will offer investors the opportunity to acquire a limited amount of shares of the company, as part of a wider funding round to support its growth as a regulated platform. This is Mintos’ first-ever crowdfunding campaign.
Martins Sulte, CEO and co-founder of Mintos, says that demand for alternative investments has grown since interest rates have declined and equity markets have become “crowded.”
“In the past, when retail investors did look at alternative investments, they often found that these came with high minimum investments and high fees that kept them out of the mass market. Current demand is for modern solutions that are both accessible and not correlated with traditional assets. Mintos goal is to offer loans as a new alternative investment type, fitting retail investor needs.”
Mintos reports “an unprecedented growth” but the company believes there is still a huge market opportunity ahead of the company. Mintos believes it is well-positioned to meet the increasing demand for alternative investments and to capitalize on the rise of non-bank lending. Mintos states that non-bank lending is already at €3 trillion industry. The “crowdlending” market is predicted to grow at a CAGR of 29.7% going from €57 billion in 2019 to €472 billion by 2027.
Sulte says their investor community has played an important role in their success so far:
“To say thank you, we have allocated a limited part of this round for crowdfunding and give investors on Mintos an opportunity to become a part of our growing company.”
Mintos has previously raised €7 million from angel investors while funding most of its growth via platform revenue.
Since launching in 2015, Mintos reports €6.6 billion in European loans.
Mintos recently received both the Investment Firm and the Electronic Money Institution licenses in Latvia.
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