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Income Marketplace Analysis

Loan Originator Debt
Peer-to-Peer Lending

Last updated in April 2023.

What is Income Marketplace?

Income Marketplace (or Income) is a fast-growing player in European marketplace lending. It launched in early 2021 and offers debt investment from loan originators based in Northern Europe and emerging markets of Asia and Latin America. It has funded more than €37.5m worth of loans to date and during the past 12 months an average of €2.9m has been funded every month - see Income statistics for more historical funding volume insights.

Key Takeaways

  • Owned by the founders and equity investors (including VC and crowdfunding)
  • Offers various types of debt investments from loan originators in Europe, Asia, and South America
  • All loans are covered by a 60-day buyback guarantee with an additional “junior share”.
  • Historically 11.81% average interest offered

How Income Marketplace Works

Income offers debt investments from nine partner organizations, including Finish and Estonian business loan providers and a Latvian car loan issuer. However, the majority of investments (approx. 52%) come from the loan originator Danarupiah, which offers short-term personal loans in Indonesia. Some projects (mostly business loans) come with asset collateral.

All loans are covered with a buyback guarantee and an additional cashflow buffer called “junior share” that kicks in if loan originators are not able to honor buyback obligations. Earnings generated by the performing loans listed on the Income Marketplace will serve as a safeguard for investors. Income will gather borrower payments for these loans and utilize them to maintain the loans until all investor demands have been met.

Investors have the option to utilize the auto-investment feature for fund allocation, but the secondary market for early investment exits is not yet available.

Income Marketplace Returns & Fees

The platform reports an average interest rate of 11.81%. Approximately 32.6% of investments experience delays, and 2.49% have defaulted, with buyback procedures initiated. All loans with buyback initiation have been successfully reimbursed to investors.

Income does not impose any fees on investors. Although borrower fees are not revealed, the disclosed average annual percentage rate for borrowers from the loan originator Vivus Mexico reaches a staggering +3500%.

Income Marketplace Management

Income was launched by Kimmo Rytkönen and Mikk Läänemets, who retain leading positions in the company as CEO and General Counsel.

Ownership is split between the founders and private equity investors. Income has raised funds via several seed funding rounds, including via crowdfunding platforms Seedrs and SeedBlink. Singapore-based Tolaram Group, which owns one of the loan originators at Income, has been the leading investor in all rounds.

Income doesn’t publish financial statements.

Special Considerations

Income is a relatively new platform. In a written interview with P2PMarketData, Income Marketplace CEO – Kimmo Rytkönen, tells us how they plan to grow:

Our strategy is to grow with moderate speed and introduce new asset classes as we go forward. As our big vision, Income is not just a loan marketplace in the future but a one-stop-shop for passive income and cash flow. Short term initiatives aim at launching the secondary market as well as improving the investor experience, long term plans revolve around our big vision, but they will have to wait for a while.