Mintos welcomed over 100,000 new investors last year
Mintos welcomed 108,782 new investors in 2021 and saw investment levels rise to €1.78bn (£1.49bn) over the course of the year, nearing pre-Covid levels.
Investors earned €49.26m from the alternative investment marketplace in 2021 at an average net return of 10.21 per cent. Meanwhile, 10 new lending companies joined the platform.
In 2021 Mintos obtained its investment firm license, worked on transitioning to regulated financial instruments called Notes and reached its €7bn lending milestone.
The platform also partnered with Nasdaq CSD to develop the API solution for issuing ISIN codes for Notes and finalised the concept and carried out user testing for its new product offering exchange traded funds.
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“In 2021, we mostly worked on regulation-related objectives across our teams who completed around 1,500 tasks on this long journey that led us to become a licensed investment firm,” said Martins Valters, co-founder, chief operating officer and chief financial officer of Mintos.
“We’re proud that this Mintos initiative has set a new standard for loan-based investment platforms as having EU-defined licenses provides investors with a safer investment environment.
“Simultaneously, it also sets a new course for the existing and potential players in our market, protecting us from negative sentiment caused by those who want to make a quick profit on investors’ trust that we built over the years.
“We saw close to 100,000 new investors registering on Mintos in 2021, and our outstanding investment levels continually increased over the year, coming close to pre-pandemic levels this December.
“In 2021, a total of €1.7bn was invested in loans on Mintos, which was more than the year before – indicating our strength, and keeping Mintos as the market-leaders of loan-based investment platforms in Europe.”
Mintos said it was satisfied with its collections and recoveries last year, having recovered around 50 per cent of the total exposure. Overall, a full recovery was reached with five companies: Aforti, Iute Kosovo, Peachy, Akulaku, and Kredit 24.
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“The fact that we recovered around 50 per cent of the exposure is just the tip of the iceberg, of which underneath is thousands of work hours across meetings, negotiations, proposals, and execution,” said Dmitry Amelin, debt collection manager at Mintos.
“When it comes to our approach to working on these cases, the crucial first step is to assess the underlying issues so we can choose the best next steps. In difficult times, we usually reassess the management strength of these lending companies because, by human nature, it tends to differ from normal times.
“All successfully closed cases were primarily based on the ability of companies to make repayments and, equally as important, on the willingness for honest and transparent communication with the management teams of the lending companies.
“One of our stand-out cases was Kredit 24. They had a challenging situation, but we reached a successful closure through the excellent communication flow and willingness to work out solutions with Mintos.”