Estonian fintech startup EvoEstate secures €320K pre-seed round for global expansion

Estonian fintech startup EvoEstate secures €320K pre-seed round for global expansion

Published: 18-08-2020 14:26:00 | By: Pie Kamau | hits: 5240 | Tags:

Estonian fintech startup EvoEstate announced a €140K pre-seed extension to close its €320K pre-seed round, backed by Lithuanian Startup Wise Guys, a Hong Kong-based stealth investment fund, and business angels from France and the Baltics.

While many of the European P2P and crowdfunding platforms have been experiencing substantial delays in interest payments, EvoEstate’s portfolio has remained intact by not exceeding the 3% mark of late interest payments. During the all-European lockdown, the average XIRR for repaid projects stood at 12.6% while projects from 4 countries were repaid. Up to date, Evo Investors have helped co-finance over 180 real estate projects from 15 countries. The current average annual return rate of the repaid projects is 12.64%.

EvoEstate recently introduced risk scoring models for property investments, which the company is currently working to improve even further. Additionally, EvoEstate began running scoring models on its originators to identify the risk level of the environment the deal is structured in.

EvoEstate has already been recognised as the best Fintech business in the Baltic states by Techchill and named one of the top 10 startups by Emerging Europe. With the newly raised capital, the company is planning to go beyond Europe and start providing services on a global scale. The funds from this funding round the funds will be allocated to serve a few purposes.

With the growing user base of the platform comes the necessity for business expansion. Although EvoEstate operates from the Baltic States, it has incorporated the approach of going global from the very first days. The customer base includes only 5% of local clients, while 95% of users come from Western Europe and international financial hubs. Seeing the increased demand for diversified real estate investment options, EvoEstate aims to become accessible to investors from new geographical areas. Therefore, part of the raised funds will be spent on further expansion and securing the required financial licenses.