After the corona-related decline that began in March 2020, Mintos recorded a recovery towards the end of 2020 and finally closed the year with sales of € 10.2 million. In addition, there were € 1.6 billion in financed loans and investor interest income of € 53.3 million. Mintos sees consistent communication and investor loyalty as the main reasons for the rapid recovery.
June 7, 2021. Mintos, Europe’s leading alternative investment platform for credit investing has released its consolidated, audited financial report for 2020, along with a number of lessons learned and what investors can expect in the near future.
2020 in retrospect: from caution to steady growth
January and February 2020 were the best months in Mintos history. A record volume of financed loans was achieved and more new investors were won than ever before. However, with the outbreak of the COVID-19 pandemic in March, conditions in the industry changed rapidly, and so did Mintos’ goals. “Our focus shifted quickly. While it was previously focused on expansion and growth, it was now only about ensuring business continuity and operational sustainability. We were fully focused on weathering the macroeconomic recession, “says Minto’s CEO and co-founder Martins Sulte.
At the beginning of the COVID-19 pandemic, many investors decided to reduce or even withdraw their investments and await the economic outlook. In addition, the global downturn in 2020 resulted in a sharp spike in non-performing loans, many of which ultimately defaulted. Mintos responded quickly and built teams within the company that only dealt with recovering loans.
Despite these challenges, over 80% of the entire funded portfolio was able to maintain its strong performance and distribute a total of € 53.3 million in interest income to investors. Compared to the € 45 million generated in 2019, this is a significant increase of 18.9%.
In 2020, 128,380 new users were gained for Mintos, which means that the platform now has a total of 369,332 investors from 105 countries. With an additional 1.6 billion euros in financed loans in 2020, the cumulative volume of financed loans also grew by 37.2% to 5.9 billion euros.
Lessons from last year: communication and supporting tools for investors
“Looking back, our agile approach helped us to make progress even in the turbulent 2020 financial year,” said Sulte. “In the past year, we have developed and implemented many projects and have thus come closer to our vision of making credit investments just as commonplace as investing in other popular investments like stocks or real estate. “
Mintos cleared a number of hurdles in 2020 by strategically focusing on improving its operations from an investor perspective. For this reason, the company focused on making the reports even more transparent and thus achieving consistent communication with investors.
As many of the risks associated with the industry materialized in 2020, Mintos increased its commitment to protecting investors who are exposed to high levels of risk. Among other things, the company established supporting tools for risk assessment, for example the Mintos Risk Score and the suitability and appropriateness assessment for investors. At the same time, Mintos is continuing to work on similar initiatives to increase risk awareness among investors.
Achievements: Improving Service & Achievements in Fundraising
Despite the ups and downs of the market, the Mintos team focused on continuously improving the service. In January, a new rating model for credit companies was therefore introduced – the Mintos Risk Score. A month later, the company launched the Mintos app. Much time and effort has been invested over the year to improve the user experience and to create study materials on investment strategies. At the end of 2020, the company started a crowdfunding campaign and raised over 6.55 million euros, which was the largest amount of crowdfunding that has ever been raised in the European Union on the Crowdcube platform. It is also noteworthy that Mintos received the AltFi People’s Choice Award 2020 for the fifth time in a row, a sign of the company’s strong and loyal community.
A look into the future
Mintos is very optimistic about the future as investment rates regain momentum. If you look at the figures from the first quarter for 2021, the volume of financed loans has already increased by 26%. A sign that investor confidence is slowly returning.
Mintos is steadily approaching the important milestone of becoming a regulated trading platform. It is expected that the company will shortly acquire licenses to operate as an investment firm as well as an e-money institution. Mintos itself sees these steps as essential to bring credit investments into the mainstream.
The company’s 2020 consolidated annual report can be found on the Mintos website.
About Mintos
On Mintos, investors have the option to invest in loans made by lending companies to consumers and small businesses around the world. Mintos now also offers lending companies access to an additional source of funding. As a global, award-winning marketplace with more than 400,000 registered users and a total financed volume of € 6.5 billion (May 2021), Mintos is the market leader in continental Europe with a market share of 45%. Visit mintos.com to learn more.
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The author only provides information here; there is no investment advice, recommendation or solicitation to buy or sell investments. Investment business involves risks, so consulting professional investment advisers is recommended. In this context, we would like to point out that exposure to shares (including hot stocks or penny stocks), certificates, funds or warrants is sometimes associated with considerable risk. A total loss of the capital employed cannot be ruled out.
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