European peer-to-peer lender EstateGuru is looking to raise up to €2m (£1.76m) on equity crowdfunding platform Seedrs.
This is part of its €5m series A fundraising round, to help support its ambitions of becoming the biggest real estate financing platform in Europe by 2025. It said it will do this by offering the best quality digital experience for its borrowers and investors.
EstateGuru, which is based in Estonia and lends across continental Europe, finances projects with collateral using mortgages, to achieve straightforward and secure funding in real estate lending.
The platform offers investments in seven countries, facilitating more than €200m-worth of loans since its inception in 2013. It offers investors an average interest rate of 11.8 per cent and has paid out €13m in interest payments in total to 46,000 investors to date.
“We truly believe that alternative financing and the business model of EstateGuru is designed for the next wave of economic success,” said Marek Pärtel, co-founder and chief executive of EstateGuru.
“Entrepreneurs and investors need new solutions on how to grow their business and income.
“Back in 2008, when the idea of the EstateGuru was born, we were also going through turbulent times, much as we are now.
“That’s why EstateGuru was created in the first place – to have the business model for different business environments.”
Read more: EstateGuru enters German P2P lending market
EstateGuru said that European venture capital fund Speedinvest continues to support the firm in its growth ambitions.
“We feel it is more important than ever for small businesses to get fast and easy access to capital,” said Tom F. Lesche, principal at Speedinvest.
“That’s why EstateGuru will be a major beneficiary of the current market situation – while real estate will always be a safe haven in troubling times. So, we see this as a massive market opportunity.
“And the team at EstateGuru is optimally positioned to seize it by having a deep understanding of real estate and digitising the loan process.
“For all of those reasons we’re backing the team on their mission to become the number one real estate investment platform in Europe.”