Robo.cash: ‘Mixed’ P2P platforms lead in funding rounds
European peer-to-peer platforms do better in funding rounds when they have a mixed business and consumer lending model, according to research by Robo.cash.
The European P2P platform analysed 507 P2P platforms across the continent and found that they had attracted $11.7bn (£9.7m) through 387 funding rounds since 2005. About 1,580 private and institutional investors took part in the transactions.
The greatest interest among investors was shown to platforms in Great Britain, Germany and France. These countries together attracted 89 per cent of all investments in the European P2P industry.
Of all investment made, 50 per cent was in the mixed business and consumer lending sector.
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However, the total investment in the European market is still lower than in Asia ($12bn) or North America ($19.6bn) over the same period.
In 2022, the growth in total European fundraising was mainly due to so-called conventional debt, the volume of which grew by 45.4 per cent.
At the same time, financing through rounds itself reduced by 29.2 per cent, which, together with the previous indicator, led to an overall increase of 14.8 per cent.
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“One of the factors behind the fall is the global geopolitical situation, which forced investors to change their strategies,” Robo.cash said.
“Despite this, the overall amount of funds raised still increased. This tells us that the P2P lending market in Europe is trying to adapt to economic and political turbulence and has the potential for further development and growth in peacetime.
“There is a clear trend towards increasing diversification. Platforms tend to pay attention to specific clients in order to build long-term relationships with them.”
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