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Indemo Analysis

Loan Originator Debt
Peer-to-Peer Lending
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Last updated in November 2023.

What is Indemo?

Indemo is a newly launched Latvian investment platform licensed by the Central Bank of Latvia.[1] It opened it's doors to investors in June 2023 and offer investments in bundles of non-performing mortgage loans originated by Tamarindo Vector in Spain. Each debt note includes eight such loans, with a detailed flow chart tracking progress from initial notification to court-sanctioned real estate acquisition. In its first five months, Indemo funded over €504,000, averaging about €100,000 monthly.

Key Takeaways

  • Indemo is a new platform offering bundled non-performing real estate loan debt notes.
  • Allows investments starting at €10, solely from the loan originator Tamarindo Vector.
  • Debt notes are structured as bullet loans carrying substantial uncertainty in the 15.1% expected return and 24-month expected durations.
  • The has attracted outside capital from Latvian tech investors by closing a seed investment round of €500,000 in January 2023.

How Indemo Works

Indemo aggregates non-performing real estate loans acquired by Tamarindo Vector from Spain's secondary market into debt notes. These notes, starting from a minimum investment of €10, are accessible to registered users on the platform.[2] Tamarindo Vector actively pursues loan recovery through legal means. All notes are issued by "Indemo SPV Issuer No1 SIA" as bullet loans, repaying investors at maturity. The standard term is 24 months, but this can vary based on the recovery timeline of the eight underlying loans.

Since its inception, Indemo has issued and funded nine bundled real estate debt notes, with five currently open for investment, each offering an expected return of 15.1%. The actual return hinges on the amount recovered from these non-performing loans. The platform maintains transparency in sharing the distribution rate of returns between investors and the lending company, by a "Performance-Linked Interest" model. Currently, this model allocates 50% of returns on all 14 issued debt notes to the lending company and Indemo.[3]

Indemo, despite being a new platform offering high-risk investments in overdue loans from a single originator, emphasizes informative technology. It features a map showing real estate locations, details on debt notes and underlying loans, flow charts for each loan's recovery process, key investor documents, and appraisal documents for each real estate collateral. However, these debt notes cannot be traded on a secondary market before maturity but the platform does offer an automatic investment setup feature.[4]

Indemo Returns & Fees

Indemo, operational for only five months, funds investments from a single originator in bundles of overdue loans structured as bullet loans with a 24-month term. The actual returns will remain uncertain until the first debt notes begin repaying at their expected maturity. This adds a significant level of uncertainty to the advertised 15.1% expected return rate. Additionally, the platform does not feature a statistics page.

Indemo does not impose direct fees on investors. They likely generate revenue through a portion of the 50% "Performance-Linked Interest" charged on investment returns from Tamarindo Vector. The platform subjects all interest earnings of investors to a 5% tax.[5] It also offers registered investors to participate in a referral program which yields 0,5% on introduced investments during the first 180 days.[6]

Indemo Management

Indemo is led by CEO and Co-founder Sergejs Viškovskis, who has over 10 years of experience in financial market legal roles. This includes over two years as a senior legal counsel at Mintos, Latvia's largest debt note investment marketplace. The Indemo management team includes CFO and Co-founder Aleksandrs Volosins, who brings over 20 years of experience in corporate finance, including roles at a Latvian commercial bank and as a corporate finance consultant. Together with the board member and Co-founder Pavels Pochtarenko and CTO Daniels Zirjakovs they make up the management team of Indemo.[7]

Special Considerations

In January 2023, Indemo announced the completion of a €500,000 seed investment round before its platform launch. This round saw participation from existing shareholders and three new equity investors: Aquatica founder Joseph Burnstein, banking and fintech investor Gocha Tutberidze, and the Igosins, a family of tech investors. With this funding, Indemo's total valuation pre-product reached €2,500,000.[8]

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