EstateGuru partners with Varengold Bank

EstateGuru, a European specialist in alternative property lending, is partnering with Varengold Bank whereby Varengold Bank will provide a regulatory umbrella to enable the launch of EstateGuru’s full-service package in Germany.

EstateGuru is the Pan-European marketplace facilitating property-backed loans for small and medium sized enterprises. Through its platform, private and institutional investors can invest in carefully selected projects backed by first-rank mortgages, starting from as little as EUR50. Founded in 2013, EstateGuru today offers investments in eight countries, has facilitated more than 263 million euros worth of loans and rewarded its 64,000 investors with more than 20 million euros in interest payments as of 16 November, 2020. Following the upcoming signing of the fronting service agreement with Varengold Bank, EstateGuru will offer its full range of services to all borrowers and investors based in Germany.

“Geographic expansion is one of the three key development areas that will empower us to deliver on our long-term strategy to finance EUR5 billion annually by 2025. The other two being technology and institutional investors. Germany has been on our radar for quite some time. Our biggest community of 19,000 private investors comes from here. So, it is a logical step to become a proper member of the alternative finance industry in Germany. To be fully compliant with the regulatory environment in Germany, we need to have a fronting service cooperation with a local bank. As Varengold Bank is already a valued long-term partner and first-class service provider for fintechs, we have decided to ensure compliance by partnering with them,” says Marek Pärtel, co-founder and CEO of EstateGuru.

"When it comes to financial services, Germany is a heavily regulated market. Foreign fintechs tend to underestimate the bureaucratic hurdles until they experience them firsthand. EstateGuru has decided to address this challenge by making use of the regulatory umbrella we can provide thanks to our full banking license. It is a perfect example of how fronting services enable the entry of companies with business models that bring innovation, new technology and agility to the German market – to the ultimate benefit of all market participants. We are happy to contribute our share to market development and proud to have the opportunity to exhibit our fronting expertise as part of an expansion of our existing partnership with this Estonian fintech powerhouse”, adds Lukas Diehl, Executive Vice President and Head of Marketplace Banking of Varengold Bank.