Publication on the Lithuanian business news vz.lt
Last year, the Lithuanian crowdfunding platform Crowdpear funded more than EUR 13 million in real estate-backed loans, three times more than the previous year. Since the platform’s launch, Crowdpear has funded more than EUR 21 million in loans, and investors who invested in loans on the platform have already received over EUR 1 million in interest.
“In terms of the volume of financed loans, we are one of the fastest growing platforms if we compare the results of the first two years of operation with older market players offering investments in loans backed by real estate,” – says Arūnas Lekavičius, Chief Business Development Officer at Crowdpear, one of the platform’s shareholders.
The platform is launching in the Romanian market this year to provide investors with a broader range of investment offers. Crowdpear investors will soon be able to invest in Romania’s first real estate-backed loans. Until now, the platform has only offered investments in loans for projects developed in Lithuania.
“We opened up the possibility of investing in loans through the Crowdpear platform a few years ago. Our business volumes are growing, and at the same time, the needs of our investors are growing, so we are expanding to other markets,” – Arūnas Lekavičius shares the nearest plans.
According to A. Lekavičius, expansion into foreign markets was planned in the company’s strategic business plan from the beginning of Crowdpear’s operations, and the EU crowdfunding service provider license (ECSP) granted to the platform in the summer of 2023 only expanded the development opportunities.
“According to the operating license we hold, we can operate in any country of the European Union. Last year, we carefully analyzed several foreign markets and decided to start expanding in Romania, where we see a well-developed infrastructure for verifying the data necessary for our activities and a legislative framework close to our home country. The Romanian market is growing, and the need for real estate development, and at the same time, financing, is also growing – especially in the largest cities of Romania,” – comments A. Lekavičius.
Arūnas Lekavičius states that Romanian real estate developers will work with team members dedicated to that market, who are best versed in working with local real estate developers. The platform’s headquarter in Lithuania will maintain centralized management of all loan evaluations and internal processes.
In addition to its strategic development, Crowdpear actively invests in technological solutions that meet customer needs and system security. Earlier this year, the platform launched its mobile app, which allows investors to quickly and conveniently invest in loans in the primary market and track their investment portfolio.
Crowdpear offers investors an average annual return on investment of about 11%, and real estate developers on the platform can expect flexible and competitive conditions to receive the necessary financing. According to Crowdpear statistics, the platform has financed the most real estate projects in Lithuania’s capital, Vilnius (71%). Other funded projects are in Lithuanian cities Kaunas (15%), Lithuanian resort towns of Palanga and Druskininkai (6%), Panevėžys (6%) and Šiauliai (3%).
Crowdpear investors have already funded over several hundred loans, with a total value of €21.17 million. More than half of the funded loans, or €11.73 million, have already been repaid to investors. More than €1.14 million in interest has already been paid to the platform’s investors.
The Crowdpear investor community currently consists of more than 7 600 verified investors, of which about 90% are from foreign countries. Both individuals and legal entities, including financial institutions, invest on the platform.