We aim to build the first digital bank in CEE for anyone to borrow, invest and transfer money easily.
|Sectors||Finance & Payments Digital Mixed B2B/B2C|
|Incorporation date||25 Jul 2018|
- The first crowd lending company in Moldova
- Over €2 million worth of loans intermediated on our platform
- Partnered with UNDP, FTA (USAID, Sweden), EFSE & EBRD
- Talking to banking partners to launch virtual cards and transfers
Fagura was launched in 2019 in Moldova with the idea of helping borrowers overcome bureaucratic burdens and financial limitations when accessing a loan. The company created a platform to connect those borrowers with investors who were seeking better returns than those obtained from bank deposits. It deployed a proprietary credit scoring algorithm to facilitate the smooth flow of capital.
Today Fagura is a community of individuals and SMEs who borrow from and lend to each other. An ecosystem for alternative funding and investments where peers trust each other and grow together.
To further facilitate financial inclusion, our clients need to be able to send and receive money in real-time. They need to be able to spend and transfer cash as they please.
Fagura is therefore willing to expand its crowd lending operations to add transfers and payments. All of these in a single application. A true community digital bank for members to be able to borrow, invest and spend money instantly.
Substantial accomplishments to date
May 2019 - the crowd lending platform goes live in Moldova
Dec 2020 - just under 100,000 unique visitors on our platform
May 2021 - Fagura is the first company with the core of its business in Moldova to raise money on Seedrs
Dec 2021 - €1 million worth of loans intermediated on the platform
Feb 2022 - Fagura wins the scaleup cohort of the InnovX by BCR accelerator
May 2022 - the secondary market module is launched (allowing investors to transact loans among each other)
Jun 2022 - the Android and iOS mobile apps are launched for investors
Jul 2022 - Fagura applied for a license to become a European crowdfunding platform and get authorised by the Financial Supervision Authority in Romania
Aug 2022 - SME lending is launched in Moldova (deploying the proprietary scoring4business algorithm)
Sep 2022 - partnership with Chemonics International - implemented Future Technologies Activity in Moldova, funded by USAID and Sweden to boost our operations in capital distribution to local SMEs
The awards obtained represent additional validation and confidence in what we do.
The main crowdfunding revenue streams today:
3% of the borrowed amount is charged at origination of the loan (borrowers receive their loan minus the retained commission);
2% is the amount paid by investors for having their investment serviced (investors get a capital repayment on each of their investment minus the retained commission);
1% is the fee paid by investors when selling their investments on the secondary market
A breakdown of the Community Digital Bank revenue streams (from mid 2023) and their respective shares of the total segment revenue*:
- fees for European and cross border transfers (35%)
- fees for Euro and non-Euro payments (30%);
- fees for cash withdrawals in both Euro and non-Euro countries (30%);
- subscriptions (5%).
*The weights assigned to each business segment are forecasted for the first year of activity. They will change thereafter and reflect the geographical expansion and customer breakdown at Fagura.
Use of proceeds
The focus of Fagura’s activity moving forward is product & technology enhancement, client acquisition and business scaling in both the Romanian speaking countries and beyond.
We aim to have a functional community digital bank app by the end of 2023. The app is planned to include both the crowd funding platform and the aforementioned cash operations (transfers, payments and virtual cards). The latter will require integrations with Electronic Money Institutions and new experienced hires in the company (mainly in the IT department). The general use of proceeds will be within the following structure:
40% - product & technology
30% - marketing and sales
30% - headcount (IT, commercial, finance, compliance/AML)
Investors in this round are investing in and will become shareholders of Fagura OU, established in Estonia under the number 14532315. This is the holding company for the group. Fagura Finance SRL 44221810 (Romania) and OCN Fagura Marketplace SRL 1018600006071 (Moldova) are the two 100% owned subsidiaries.
The company has the following outstanding convertible loan, which may convert to equity after this round and dilute existing shareholders:
1. €100,000 loan from V7 Capital Romania, with the following key terms:
- Interest rate: EURIBOR 6 months + 7.5% per annum.
- Conversion trigger: Upon the Lender’s sole option, exercised at any time prior to the final repayment date if the company undertakes any financing round.
- Conversion price: Price equal to the same price per share applicable to all investors in the financing round
- Valuation Cap: No cap.
- Share class: Ordinary shares
- Repayment date: 15/11/2023
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