Community Digital Bank and Alternative Investment Platform Fagura Raises €780,000 on Seedrs

Fagura, a Fintech that aims to become the “first community digital bank in CEE for anyone to borrow, invest and transfer money,” has raised over €786,000 on Seedrs.

According to the offering page, 287 investors backed the firm, which easily topped its €400,000 initial funding goal. Investors received equity at a pre-money valuation of €5 million. Fagura is approved for secondary transactions of its shares and is a Seedrs nominee firm.

According to a note from Fagura seven angel investors participated in the round with direct investments. The securities offering took place in two stages, with a private stage opened to Fagura’s community and the second opened to any investor.

The capital infusion will be utilized to expand its services in Romania and to develop digital banking services in the country. The funding round is said to be one of the largest ever on Seedrs from a startup in the Romanian ecosystem. Fagura was launched in 2019 in Moldova and claims to be the first “crowd lending” or peer-to-peer lender offering services in the country, having originated over €2 million.

The offering page has Fagura based in Estonia, a Fintech-friendly European jurisdiction.

Fagura previously raised capital on Seedrs in 2021.

Community Digital Bank

Fagura CEO Tudor Darie said in a release that the second securities offering on Seedrs was a real success, especially in light of the ongoing crisis. Fagura was able to raise twice as much from their community compared to their first securities offering.

“The money will also enhance our support for the people and the ideas that are changing the world.”

Investor Mihai Stipanov of Mozaic Ventures, UK – a VC that aims to support projects and founders from Moldava, said the team at Fagura was very competent and capable of scaling and expanding services globally.

It is this scaling potential that attracted us the most in making this investment decision, but also as the original technical solution that Fagura offers.”

Another angel investor, George Teodorescu, Regional Director at Mixbook, Silicon Valley, described their investment as a vote of confidence for the innovative business model.

Currently, Fagura originates loans for both individuals and companies in Moldova. It accepts EU and UK investors.

Fagura generates its revenue from fees attached to services like cross-border transfers, payments, cash withdrawals, and subscriptions.

Currently, borrowers may pay interest on a loan starting at 7.9% (the average is 22.81% currently), with investors generating an average of 10%. Fagura utilizes an automated scoring mechanism that allows loan decisions to be made in a few seconds.

Fagura received several national and regional fintech awards: Top 3 best FinTechs, 2019 (Romania), Brand of the year in FinTech, 2020 and 2021 (Moldova), Startup with the greatest impact, 2020 (Moldova). The company also came in first at the InnovX BCR Scaleup Accelerator in Romania (2022)  and won The Next 100 Global Companies award (by Global Banking & Finance Review) and the Euro-Asian Startup Awards in 2022.

Fagura has applied for a license to become a European crowdfunding platform authorized by the Financial Supervision Authority in Romania. Once approved, Fagura may offer its services across all of the EU.

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