EstateGuru comes close to breaking lending record

EstateGuru came close to breaking its loan record last month, the platform has revealed.

The European peer-to-peer property lender said it helped finance 95 loans worth €21.2m (£17m) in September.

It is just under the record €21.5m of lending it did during March 2021 across 92 loans.

EstateGuru said half of the loan volume originated in the German market, where forecasts remain strong for the last quarter of the year.

The platform received €6.3m of repayments in September and said its default rate, at 8.1 per cent, is also falling.

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“We did not witness any negative effect on the portfolio quality from default and late loans as these haven’t increased,” EstateGuru said.

“We experienced a slight default rate decrease during the last month, but nothing of any significance to investors.”

The platform said five borrowers defaulted during the past month, for a total amount of €1.4m.

These defaults came from the three Baltic countries and Finland.

The platform revealed last week that its loan volumes hit €52.6m in the third quarter, up from €28.4m a year before.

Its revenues also rose 81 per cent annually to €1.9m, while it welcomed 8,586 new investors during the period, a third quarter update from EstateGuru said.

The German market was the biggest contributor to loan growth, accounting for €23.5m, followed by €13.4m from Estonia.

It comes after EstateGuru raised €5.8m from a series A funding round last month led by UK venture capital firm TMT Investments.

The successful series A fundraise followed an equity crowdfunding campaign on Seedrs in May, which raised €1.3m.