What happened last month in peer-to-peer lending and real estate crowdfunding? Which platforms are on the rise, and which ones are falling behind? How has the sector performed over the last 12 months? We look at numbers reported to P2P Market Data in November 2021 and dive deeper into this month’s focus: The two main Marketplace Lending business models Direct Marketplace Lending & Resale Marketplace Lending.
About the monthly report
In the monthly funding report, we publish the funding amounts of online crowdfunding platforms. We track data from 71 participating platforms, operating in 24 markets and 9 different currencies. Please note that:
- We convert all amounts to EUR for comparison reasons, using exchange rates from the last day of the month.
- None of the numbers cited is an estimation – the amounts are reported directly to us or pulled from the platforms' publicly available loan books and statistic pages.
- Historical funding volumes reported below may divert slightly from volumes calculated in previous reports due to exchange rate fluctuations and the changes in the pool of platforms we track.
Key highlights: What happened last month in crowdfunding?
We recorded a total funding volume of €616m in November 2021 – an increase of 12% compared to October 2021. Over the last 12 months, the whole sector has grown by 38%, at a 3.2% average monthly growth rate.
Looking at funding across the main investment categories, business lending, property lending and crypto lending increased by 54%, 25% and 5% respectively, while consumer lending recorded no change compared to October 2021.
We reported several noteworthy milestones reached last month:
- Kameo Denmark has funded more than €10m worth of loans since its inception.
- Soisy has crossed the €50m total funding threshold.
- MytripleA has reached over €200m of total funded loans to date. Congrats!
Platforms’ performance: How did the key players do in November 2021?
Mintos funded the most loans in November 2021, followed by PeerBerry and Opyn. Overall, the five largest platforms accounted for 58% of the total funding volume recorded in our database, while the ten largest platforms funded 73% of the total volume. The largest players were most likely to be direct marketplace lending platforms (7 out of 10) come from Latvia (2 out of 10) and offer consumer investments (5 out of 10).
EvenFi – a direct marketplace lending platform from Italy, offering business investments, has been the fastest growing platform in the last 12 months, followed by Kameo Denmark and Opyn. The “rising stars” were most likely to be direct marketplace lending platforms (8 out of 10), come from Italy (3 out of 10) and offer property investments (4 out of 10).
Viventor, Finansowo and Housers have grown at the slowest rate. Overall, the slowest-growing platforms were most likely to be direct marketplace lending platforms (6 out of 10), come from Latvia (3 out of 10) and offer consumer investments (4 out of 10).
A deep dive: Two main marketplace lending models compared
There’s been a lot of innovation in the sector, including expansion to new investment areas and proliferation of alternative business models. That’s why we’ve been recently rethinking our approach to categorizing and labelling crowdfunding platforms. We will release a full guide to our new methodology soon, but here’s one piece of insight from our revamped data.
Direct marketplace lending (DML) and resale marketplace lending (RML) are by far two main funding models among the platforms we track (you can read more about the definitions in our glossary). This is what our data says about the two models:
- The direct model remains more common: 49 out of 71 platforms we track are DML platforms (vs 19 RML platforms).
- RML platforms are big: Even though they account for only about 27% of all listed platforms, they are responsible for over 55% of total funding volume to date. Some of the biggest players in Europe, including Mintos, Twino, and Peerberry operate the resale model.
- RML platforms focus on the consumer segment: 16 out of the 19 listed RML platforms offer investment in consumer loans. The ratios for DML platforms are much more balanced (14 business, 13 consumer and 22 real estate lending platforms).
- The resale model is a European invention: Worldwide, 28 out of 29 RML platforms in our global database operate in Europe. Eighteen are based in the three Baltic countries – the European hotspot for RML.
The direct model seems more shockproof: While the funding volumes dipped for RML platforms when the COVID crisis hit, DML platforms continued to grow almost without a slip.
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