Last updated in May 2022.
What is Income Marketplace?
Income Marketplace (or Income) is a fresh player in European marketplace lending. It launched in early 2021 and offers refinancing of consumer loans from loan originators based in Northern Europe and emerging markets of Asia and Latin America. It has funded €20.24m worth of loans to date - see Income statistics for more historical performance insights.
- Owned by the founders and equity investors (including VC and crowdfunding)
- Mostly payday loans from Indonesia, covered by a buyback guarantee
- 11.8% average return
Who is Behind Income Marketplace?
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.
Income Marketplace's Investment Product
Income offers re-purchase of loans from seven partner organisations, including Finish and Estonian business loan providers and a Latvian car loan issuer. However, the majority of investments (approx. 63%) come from two Indonesian loan originators, which offer short-term personal loans (or payday loans). Some projects (mostly business loans) come with asset collateral. All are covered with a buyback guarantee and an additional “cashflow buffer”, where
the loan portfolio of the loan company acts as collateral to Income investors. Furthermore, all partner companies retain a high share of skin-in-the-game (20%-67% depending on the loan originator).
Investors can use the auto-invest feature, but no early exit options are offered yet.
How Much Can You Earn?
The average return, according to the platform, stands at 11.8%. About 28% of investments are delayed, and roughly 1% defaulted. All loans where buyback was initiated were successfully paid back to investors.
Income doesn’t charge fees to investors. Borrower fees are not disclosed, but the published borrower interest rate reaches 4,000% annually for one of the Indonesian loan companies.
Income is a relatively new platform. In an 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.