EstateGuru is the leading cross-border marketplace for short-term property backed SME loans.
- Tallinn, Estonia
Categories: Property Digital Mixed B2B/B2C
- Social Media
- Company number
- Incorporation date
- 24 Oct 2013
- Investment sought:
- Equity offered:
for 2.29% equity
EstateGuru is the leading Pan-European marketplace that facilitates property-backed loans for developers/SME-s and carefully selected investment opportunities for our global investor base. Our ambition is to become the biggest real estate financing platform in Europe by 2025 and we will strive to achieve this by offering the best quality digital experience for our borrowers and investors.We are developing a digital and borderless ecosystem for property financing in Europe and beyond. Our unique value proposition is to connect various real estate market participants into one single marketplace by creating seamless, cross-border and digital financial solutions. This is something that other financial institutions struggle to provide.
While growing 2x every year and becoming continental Europe’s largest property lending marketplace we have financed more than €200 million worth of loans with a growing base of 46,000 investors from 106 countries. EstateGuru has offered its investors a stable 11.8% annual return and €0 loss of capital over 6 years of operations.
The majority of the company’s revenue (80%) is generated from success fees and administration fees paid by the borrowers upon funding process success and during the loan term. The success fees typically range between 2.5-4% which is calculated from the funded loan volume. Our current annual administration fee is in the range of 0.5-1%.
Additionally, the company earns revenue from all transactions that occur on the secondary market - a 2% fee is applied to the investor who sells a claim on the secondary market.
As the company’s strategy entails securing more institutional capital (just under 10% of loan volume in 2019 vs target 40% in 2020), additional revenue is generated from the interest spread, management and success fees paid by these institutions. We believe this source of revenue will start producing an equal contribution to our profit margin as that generated by the success fees from borrowers.