RATESETTER narrowed its losses in the last financial year, bringing it “within touching distance” of profitability.
The peer-to-peer platform has revealed that in the 12 months ending March 2019, losses fell to £4.2m, down from a loss of £27.5m during the previous financial year.
Over the same period of time, RateSetter saw its number of active investors rise by 26 per cent. More than 600,000 people have either invested or borrowed in the platform to date.
“It is very encouraging that we are now within touching distance of profitability,” said RateSetter’s chief executive Rhydian Lewis (pictured).
“Our model has always been differentiated from other P2P lenders because we have focussed on a low risk and liquid product for investors.
“On the borrower side, we compete in traditional and deep markets where we do not need to take undue risk to build a sizeable business.
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“We believe this makes RateSetter the sustainable challenger to the banking model of deposit-backed lending.
“Some fintechs may have raced off quicker than us, but we think the tortoise will overtake the hare.”
RateSetter confirmed that its revenue to March 2019 was £33m, down from £34.34m the previous year.
According to RateSetter’s financial update, it currently has £891m in loans under management, which includes £270m in the RateSetter ISA. The provision fund currently holds £39m.