EstateGuru, a European investment platform providing access to short-term property-backed loans, has returned to Seedrs once again to raise additional growth capital.
According to the offering page, EstateGuru has cruised past its €500,000 initial target, having raised almost €1.2 million as of this writing. EstateGuru is offering a convertible security that holds a 20% discount on a future priced round. 1,012 investors have participated so far with about a month left in the offering. EstateGuru hopes to raise up to €3 million.
The security is Secondary Market eligible and is a Seedrs Nominee offering.
EstateGuru, based in Estonia, has raised capital on Seedrs several times in the past.
In 2021, EstateGuru topped €520,000 in just hours on the platform, closing at around €1.4 million in days. In 2020, EstateGuru raised €880,000 in a priced round of a pre-money valuation of €28,824,215.
EstateGuru shares that it originated €201 million in property-backed SME loans in 2021 and €551 million since inception. The investment platform reports over 128,000 registered users.
EstateGuru generates its revenue from success fees paid upfront by borrowers as well as smaller administration fees. The company also earns revenue from transactions that occur on the Secondary Market as a 2% fee is applied when an investor sells a loan.
EstateGuru intends on using the funding to boost its institutional funding which stood at 21% of loan volume in 2021 versus a goal of 60% volume in 2022. EstateGuru will need to engage with more institutions to scale its platform.
The investment platform has recently expanded operations into the UK as well as Germany – a longtime popular region for platform investors.
EstateGuru is an interesting investment platform allowing retail investors to generate an average rate of return of 11.18%. EstateGuru regularly updates a statistics page where investors may view the rate of defaults, write-offs, etc. To date, 0.01% of loans have been fully written off.
Marek Pärtel, co-founder and Chairman of Estateguru, discussed the securities crowdfunding round earlier this month stating that this 3rd round on Seedrs is indicative of the passion of its investors. He added that they have emerged stronger than ever from the COVID crisis.
“The funds raised during this round will be invested to support our continuing growth, especially in two of our biggest markets – Germany and the UK, as well as expand into two new markets, and make significant-tech investments in building a true ecosystem for the real estate financing and investments sector,” said Pärtel.
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