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Lithuanian Financing Platform Debitum Reports that Over €10M in Investments Now Made via its Auto-Invest Tool

The team at Lithuania’s Debitum, which offers borderless SME financing services, notes that another month has passed and they would like to provide a platform update for May 2021.

Debitum’s management writes in a blog post that they’re pleased to report the positive sentiments in the market and are hoping their clients have been able to earn steady interest via their platform.

Debitum reveals that they have provided more than 30 million Euros worth of total investments via their platform and more than 10 million Euros worth of investments have been made by using their proprietary Auto-Invest tool. The Debitum community has now grown to nearly 7000 users, the company confirms.

During the month of May 2021, more than 200 investors reportedly joined the Debitum platform, increasing the total user base to over 6980 investors (and counting). This was “one of the highest increase in total number of investors over the last 12 months,” Debitum’s management claims.

But as previously reported, the activation rate of new users is “not as high as expected but Debitum team puts a lot of effort in the partnership with digital marketing specialists,” the company noted while adding that it’s working hard to attract more users.

Debitum further notes in its update:

“In terms of deposits…May was not the greatest month for Debitum platform. Even though our users were depositing quite well, the deposits were not converting well into investments. Quite a lot of investors decided to withdraw funds from the platform despite that they like investments on the platform.”

The company also mentioned that “the beginning of June has been showing that the negative effect of withdrawals will be felt in June, too.” Last month, Debitum managed to exceed 7.5 million EUR of deposits on the platform and “no one has ever lost [their] investment” on the platform, the company claims.

Debitum’s report continued:

“In May, Debitum provided the highest volume of investments since the beginning of the platform operations. We received assets from Evergreen Capital, Chain Finance, Triple Dragon, Flexidea, and Cube Funder. The total amount of provided investments climbed over 40 million EUR! As a result, our investors can choose from the highest number of investments throughout the whole history of Debitum.”

The Debitum team added that their platform investors will be able to invest in various opportunities that are “backed by a pool of loans or other collateral” which means that you can “diversify with ease.”

Last month, Debitum investors invested “a slightly higher amount of funds than in April,” the company revealed while adding that this increased the total amount of invested funds to more than 30 million EUR.

Debitum also noted that they’re pleased to see that “the overall investment facilitation rate stays above 75% but it went back to 66% in May and this shows that Debitum investors need to be more active on the platform.”

The company further noted:

“In May, Debitum investors invested in investments from 14 industries. Most of the investments went to the ITT, production, logistics, and construction sectors. Most of the assets in the logistics and production sectors were invoice financing loans that have high turnover. … most of the assets in the ITT sector were business loans with longer terms. Despite that, Debitum investors trust the loan originators who provide these loans and increase their investment in these companies.”

Debitum’s monthly report also mentioned:

“In May, similar to the overall invested volume on the platform, Debitum experienced a similar increase of automatic investments. 854,622 EUR were invested using the auto-invest tool. That is 50.27% of the total invested volume in May.”

The company claims that Debitum investors are “more willing to use the auto-invest tool as there are more and more different loans added on the platform.”

If an investor is looking to diversify their investment portfolio, the auto-invest tool is “one of the essentials, to begin with,” Debitum explains while noting that as more investments will be added to the platform, they are expecting to see “a positive trend” in June.