Estateguru reports that with the continued support of clients has allowed them to weather the storm, and consolidate their status as a key player focused on property backed lending in Finland, and the Baltics.
Estateguru‘s management notes in a blog post that the challenging macroeconomic climate has tested the industry’s resilience and adaptability, and only those companies “that have proven both resilient and flexible have endured.”
In light of these difficult conditions, Estateguru reviewed and enhanced their policies to strengthen their platform and their portfolio, and altered their focus “to better suit the tasks at hand.”
Estateguru now looks forward to a new year “brimming with crowdfunding opportunities.”
Estateguru has shared some 2023 Highlights:
- They funded just under €100M in new loans, with €21M already repaid and €78M currently performing as expected.
- €124M was repaid to our investors, with €14.6M of that amount recovered from defaults.
- Investors earned €16.5M, with an average return per investor of 8.98%
- They welcomed 8974 new users onto the platform, bringing the total to over 160 000.
- Automated investments grew by 20%.
Estateguru was an early recipient of “a pan-European Crowdfunding license, which allows us to operate in all EU member states in accordance with the framework laid out in the recently introduced European Crowdfunding Service Providers for Business Regulations (ECSPR).”
This has bolstered their reach and reputation, which is “reflected in a global investor community that now exceeds 160,000.”
In 2023, they reportedly “saw 8974 new investors joining the platform.”
They shifted their strategy from “a focus on growth to an emphasis on sustainable profitability, leading to increased revenues (€8.4M in 2023) despite lower transaction volumes.”
Although they faced a slight deficit “due to major investments (over €1M) in loan recoveries, their revised approach led to a profitable second half of the year and a high level of reinvestment by our users.”
Despite record recoveries (€14.6M in 2023), challenges remain in “reducing the default level, particularly in Germany.”
2023 in summary:
Their strategic shift towards sustainable, profitable growth “has led to increased revenue (€8.4M in 2023) despite lower transaction volumes.”
Estateguru ended the year with “a slight deficit due to investments in loan recovery, but they’re confident that these efforts will help us to achieve future profitability.”
Investor confidence remains strong “with a high reinvestment rate and new and continuing institutional partnerships.”
They’ve enhanced their credit policy, and integrated Moody’s Analytics, “to improve portfolio quality, with a significant portion of the €100M funded last year currently performing well.”
Estateguru claims that they are well positioned “to navigate the ongoing macroeconomic challenges in the real estate and investment sectors.”
Their strategy is to strengthen their position in existing markets, and maximize opportunities through the deployment and development of existing and new products, “for both investors and borrowers.”
A key focus is on reducing defaults, “especially in the German market, while keeping investors informed and engaged through regular updates.”
Their aim is to boost their monthly loan volume “from €10 million to €20 million, whilst maintaining consistently high standards in line with our enhanced credit policy, and the integration of Moody’s Analytics onto the platform.”
By focusing on their core markets, streamlining operations and refining their policies and processes, they have reportedly “consolidated their position” as key market participants.
Mihkel Stamm, CEO at Estateguru added:
“Continuing to bring down the default level remains a crucial task for 2024, and our focus in this regard is unwavering, but I am pleased with the progress made and confident that it will continue.”