Peer-to-peer bridge finance lender Propifi has suspended its P2P platform during the Covid-19 pandemic and closed its Innovative Finance ISA (IFISA), Peer2Peer Finance News has learned.
According to a note on the company’s website, all investors have been contacted by email.
“The Propifi P2P platform has ceased operating during the Covid-19 pandemic,” read the message on the website, which has subsequently been changed to “the Propifi P2P platform has temporarily suspended operations during the Covid-19 pandemic.”
The website statement also said that investors can email email@example.com if they require further information.
“Propifi continues to trade,” Propifi told Peer2Peer Finance News in an emailed statement. “However, given the current economy and recent fundamental changes in Financial Conduct Authority regulation the company has decided not to deploy its IFISA at this stage, and as such has sent all of the IFISA investors their money back. Furthermore, Propifi has decided to take the opportunity to re-engineer its business model to adapt to what has been a rapidly changing P2P regulatory landscape in 2018/19 with a view to re-launching its platform and other products its been developing at a later date.”
Propifi was launched in April 2018 with a remit to “showcase high quality, property development opportunities looking for short-term bridging loans.”
Between July 2018 and August 2018, the platform raised more than £250,000 through a crowdfunding campaign to fund its Financial Conduct Authority registration as well as web, app and platform development.
In February of this year, Propifi launched an IFISA which allowed investors to earn target returns of eight per cent with a minimum investment of £1,000. The IFISA has since been closed.