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Fagura

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Fagura is a P2P lending marketplace launched in Eastern Europe, aiming to become a digital bank

170%
 - 
Funded 14 May 2021
€200,000 target
€342,100 from 274 investors
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Business overview

Location Tallin, Estonia
Social media
Website www.fagura.com
Sectors Finance & Payments Digital Mixed B2B/B2C
Company number 14532315
Incorporation date 25 Jul 2018
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Investment summary

Type Equity
Valuation (pre-money) €2M
Equity offered 14.57%
Share price €10
Tax relief N/A
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Business highlights

  • Over 22,900 accounts on the platform and 7,000 loan applications
  • 640 loans funded - 500,000 Euros total loan value
  • Powerful team, managed 2 business exits in the past
  • Funding decision made in 1 second, thanks to AI elements
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Key features

  • Secondary Market
  • Seedrs nominee min. €10.00 +
  • Idea
  • Team
  • Updates
  • Investors 274
  • Discussion
  • Documents

Idea

Introduction

Fagura is a P2P lending marketplace launched in Eastern Europe, aiming to become a digital bank. We are a fast-growing fintech company in a totally free market for p2p lending and alternative investments.

The company is incorporated in Estonia, a digital and safe country for investors. We will capitalize on the opportunities offered by the new EU Regulation for Crowdfunding 2020/1503 to obtain a crowdfunding license in Romania, which will allow us to quickly launch in other countries in Southeast Europe, a market of over 100 million individuals and entrepreneurs, which could provide and estimated profit between 10-20% for investors in loans.

We have tested and validated our platform in a small market (Republic of Moldova), a sandbox environment, and now we crowdfund to expand and launch the first p2p lending platform in the Romanian market (for borrowers) and all European countries (for investors). We intermediate p2p loans for individuals and our plan is to do the same for startups and SMEs.

Substantial accomplishments to date

Fagura is run by a powerful team, who managed 2 business exits in the past. Our fully automated online lending & alternative investment solution has been appreciated by the local market. Fagura.com was appointed the Brand of the Year in Fintech (Moldova) and nominated in the top 3 fintech projects at Future Banking Conference (Romania).

The funding decision is made in 1 second. The scoring module is based on machine learning and has a 97% correct approximation of default. Today, Fagura has an NPL of 3.03%, one of the lowest rates in the region. The average income (XIRR) of investors is between 10-20% annually.

The platform has been launched in beta version in January 2019. It's design and development have taken us almost 2 years. The founders have invested over 250,000 Euros to make this happen. We have managed to reach the next milestones:

- We have intermediated loans in the total value of 500,000 Euros
- 1 Angel investment round in Autumn 2020

- More than 22,900 accounts created
- We have received more than 7,000 loan requests and accepted 9% of them
- Funding decision in 1 second

After the platform was validated and our Scoring technology demonstrated its effectiveness, USAID and The European Fund for Southeast Europe (EFSE) offered us a grant to develop Scoring for startups and SMEs and to facilitate access to finance for SMEs and startups in the post-COVID era.

Monetisation strategy

The business model we have embraced is commission-based. The more we finance, the more the volumes and profits are. We take:
- 3% from borrowers
- 2% from investors

Additionally, we consider the option to sell our technology:

- After the launch of Scoring4Business, we will open the service to other financial institutions in the market, so that banks and other lending companies can use technology and facilitate access to finance to increase profitability and fulfill our mission.

- We will analyze and test the option to sell other technologies, including the technical platform, developed 100% in-house.

Use of proceeds

Since the release of the beta version, Fagura's operations have been funded by founders' contribution and Angel investments. The total funding has reached €265,000. We believe in the idea of the project and are willing to further fund the project. In 2021, we plan to make cash and a non-monetary cash contribution of around €50,000.

Fagura is an easy scale platform, that needs minor adjustments for expanding on other markets. For this round, Fagura needs an additional €255,000 to cover this costs. Most of the funds earned during the crowdfunding campaign will be used to expand our operations in Romania - an 18 mln people market.

At this point, we are crowdfunding and we need 250,000 Euros for an 11,11% stake. The funds will be used as follows:

Legal & Regulatory - 53%
Talents - 22%
Technology - 19%
Marketing - 6%

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If you successfully purchase a share lot of this business, you will be granted access.

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Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

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Tax Relief (SEIS)

This business is eligible for SEIS relief - providing qualifying investors with income tax relief of 50% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Tax Relief (EIS)

This business is eligible for EIS relief - providing qualifying investors with income tax relief of 30% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Valuation (pre-money)

Valuation rounded from €2,000,000

This is the fully-diluted pre-money valuation of the business (i.e. before the new investment comes in and including issued options and other equity interests). In contrast, the post-money valuation is based on inclusion of the new investment in the value.

It is calculated as the pre-money valuation plus the amount of new investment. e.g. If Company A is ascribed a pre-money valuation of £1,200,000 by prospective investors investing £300,000, its post-money valuation is £1,500,000.

Pitch type

There are 5 types of investment pitch available on Seedrs.

  • Equity
  • Convertible
  • Fund
  • Cohort
  • Secondary

Investing in a regular equity campaign is the simplest and most common way to invest in a startup. You decide which business you want to invest in, and if the campaign hits its funding target then you will become one of their shareholders. As the company becomes more valuable, so do your shares; allowing you the opportunity to share in the future success of the business.

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Equity Offered

The equity offered is the percentage of the company’s shares being issued in return for the amount of investment raised.

When the amount raised is less than 100%, the equity offered is based on the target raise. Once the company has raised over 100% it is based on the total raised.

In some scenarios, entrepreneurs may accept additional direct investment after closing their Seedrs campaign. Provided this is within 6 months of the closing and on the same terms, we do not typically offer pre-emption rights on that extra investment (where you have the opportunity to invest again to maintain your percentage shareholding).

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Seedrs nominee

This shows if you are able to choose, when making an investment, that you be represented by, and your shareholding be managed by, the Seedrs nominee.

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Custodian

If you invest in this Campaign, Seedrs will act as Custodian rather than provide our standard nominee service. This is due to the fact that the business is not directly involved in the share sale and Seedrs will not benefit from any rights under a shareholder agreement. As a result, Seedrs will handle administrative tasks as we do normally, but you will not have information or voting rights, updates from the business, preemption on future fundraising, or ongoing support about business trading activity.

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Secondary market

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Direct investment

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Payment options

We are not able to accept card payments for investments into this sector. You can pay for your investment by creating a bank transfer, using funds in your investment account or create a Pay by Bank payment. Your investment will only be completed once the funds have reached our account.

Business Involvement

This Campaign offers shares for sale in business that is not directly involved in this Campaign or the sale. As a result, the Campaign and post-investment experience, including investor rights, will differ from a business-led campaign on Seedrs. Most notably, the business will not engage with investors in the discussion forums both during and after the sale or provide any updates to investors.

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Payment options

We are not able to accept Pay by Bank payments for investments into this sector. You can pay for your investment with a card payment, by creating a bank transfer or by using funds in your investment account. Your investment will only be completed once the funds have reached our account.

Drawdowns

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