The Russian Market for Crowdfunding
According to data from the latest report published in 2020 by the Cambridge Centre for Alternative Finance on the global market of alternative finance and crowdfunding, Russia had a total funding volume of €105.6 million in 2018, up from €28.4 million in 2017, which corresponds to an impressive growth rate of 271.3%. This places Russia’s crowdfunding market as number 16 in Europe and as number 33 in the worldwide crowdfunding statistics. The countries topping the list in Europe are the UK, the Netherlands, Germany, France, and Italy. However, no domestic/locally operating firms took part in this investigation that included 11 foreign-based platforms operating in Russia. Also, note that these numbers also include a few other alternative finance business models besides crowdfunding models like P2P lending and equity crowdfunding.
In addition to Cambridge Centre for Alternative Finance, the Bank of Russia monitors the Russian crowdfunding market quarterly by reviewing reports voluntarily submitted by key crowdfunding platforms. Here, the Bank of Russia Annual Report for 2018 (updated 18.05.2020) (see page 162) shows that the crowdfunding market in Russia amounted to ₽15.2 billion (€196.3 million) in 2018. With ₽14.9 billion, the majority was associated with the financing of SMEs. However, unpublished numbers from the Bank of Russia suggest a sharp decline in crowdfunding volumes in 2019.
Below, you will find a complete list of all Russian peer-to-peer lending platforms.
Table of Contents
Best Peer-to-Peer Lending Platforms in Russia
Here, you will find a list of the top peer-to-peer lending platforms in Russia. Under each platform, you will find a brief description of the platform and the type of peer-to-peer lending available for investing on the platform. The list is sorted alphabetically, but to promote platforms contributing to transparency in the market, we have placed the platforms sharing data about their funding volume and other relevant statistics on the top. If you see a platform missing, please feel free to submit the platform by using the submit formula located in the sidebar of this page.
Simplyfi facilitates crowdfunding in the area of SME business lending to Russian companies and entrepreneurs at a minimum investment of 10,000₽. The platform offers financing for business development, working capital, new investments, and acquisition among others. Simplyfi was founded 2015 as a Russian company. The office and company is located in Moscow, Russia and exclusively offers financing to Russian companies and entrepreneurs. All loans are in Rouble(RUB).
Any citizen of the Russian Federation over 18 years old or any Organization (LLC) registered in the Russian Federation can invest on Simplyfi.
Any entrepreneur or company that fulfils the following requirements can apply for a loan from 100,000₽ to 3,000,000₽ on Simplyfi:
- Have a minimum of 12 months of existence
- Present a good credit history
- Be profitable
- Follow the laws in the Russian Federation
Vdolg facilitates crowdfunding in the area of consumer lending to Russian individuals at a minimum investment of 15,000₽. The platform offers unsecured consumer loans to citizens of Russia with good finances for home improvements, furniture, travels, vehicles, and restructuring debt among others. Vdolg was founded 2010 as a Russian company. The office and company is located in Moscow, Russia and exclusively offers financing to Russian residents. All loans are in Rouble(RUB).
Taxation on Peer-to-Peer Loans in Russia
Investments in P2P loans are taxed according to Article 208 and Article 224 of Russia’s tax code, which means investors must pay a tax of 13% on the total amount of income earned. More details can be found by visiting the Federal Tax Service of Russia.
Keep in mind that this should not be considered tax advice and can be outdated, why you should always contact a tax adviser when handling your taxes.
Regulation on Peer-to-Peer Lending in Russia
A new law regulating crowdfunding and P2P Lending in Russia entered into force on January 1, 2020, with the requirement that already existing platforms must be compliant with the law by July 1, 2020.
The crowdfunding regulation law introduces several requirements for crowdfunding platforms, such as:
- A minimum capital requirement of ₽5.000.000 in own funds.
- Being a Russian legal entity
- Different requirements to the management team operating the platform
Also, individual investors are limited to investing ₽600.000 per calendar year unless they are registered as qualified investors, individual entrepreneurs. The limit does not apply to legal entities, but there is a limit of ₽1.000.000 on capital investments on a platform per calendar year if the investment is not about acquiring digital rights from a public joint-stock company.
The law regulated both loans, equity securities, and the purchase of utility digital rights.
To learn more about regulation on crowdfunding and peer-to-peer lending in Russia, please visit the relevant federal law here.