Income has revealed aspirations to rival major alternative lending marketplaces on the continent such as Mintos.
The Estonia-based lending marketplace launched in February 2021 and has attracted more than €2m (£1.54m) of funds from institutions and a successful Seedrs campaign.
On Income’s marketplace, both retail and institutional investors alike can invest in loans issued by loan originators globally. Its loanbook currently stands at almost €8m and founder Kimmo Rytkönen says the long-term goal is to get to €450m.
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That would give it a loanbook close to Mintos, which has around €450m of funded loans outstanding.
“Our mid-term lending target is €50m and then onwards to €100m,” Income’s founder Kimmo Rytkönen told Peer2Peer Finance News in an exclusive interview.
“The largest marketplace is running around €450m of loans outstanding, that is the long-term target.
“For now, we want to keep growing our investor base.”
Mintos has built up a respected alternative lending marketplace where investors fund loans through originators from around the world.
Income is setting up something similar but is adding an extra element of safety for investors.
“If a fintech on the platform goes bankrupt then we use the loanbook as security for investors,” Rytkönen said.
“Currently, you would only have a buyback guarantee on a platform and if the borrower didn’t pay then they would buy the claim for it.
“We have that but also a security structure that protects against the lender defaulting, which nobody else does.”
While Mintos has an alternative investment licence in Latvia, Income is still waiting for Estonian regulators to finalise rules so it can be approved and passport across the EU.
“We are not regulated today but are looking forward to being regulated,” Rytkönen said.
“I know there are a lot of investors waiting for that. It is a stamp of approval.”
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