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Kviku Finance Analysis

Loan Originator Debt
Personal Debt
Peer-to-Peer Lending

Last updated in November 2022.

What is Kviku Finance?

Kviku Finance recently emerged as a digital P2P platform for the global web of consumer loans offered by parent company Kviku Group. The platform is positioned as a neobank, connecting capital worldwide by providing instant, online lending solutions. The Kviku Group originally launched in Russia in 2013, but has since expanded globally; with hubs in 8 different countries. The company’s loans are typically smaller, focusing on virtual credit cards, POS crediting, or instalment loans. Since 2020, the company has funded over €19.1 million in loans. 

Key Takeaways

  • Digital umbrella for Kviku Group’s global web of loan originators
  • Consumer-facing debt instruments, including BNPL and Installment loans
  • An average annual return rate of 12%

How Investing on Kviku Finance Works

Kviku Finance’s loan originators offer three main types of consumer-facing loans. The first is virtual credit cards, with 2-month short-loans typically circling around $50. The second is Point-of-Service crediting, with a max investment of $300 for a duration of up to 12 months. Instalment loans are the largest investment on offer, ranging up to $3,000 for 6 months. 

According to their latest public statistics, instalment loans compromised 68% of loans issued in 2021. The launch of Kviku Finance provided the Group with additional sources of funding; including retail deposits, credit lines with banks, and institutional investors. Kviku offers investment options from as low as €1.

Kviku Finance Returns & Fees

The company boasts an average 12% interest return rate across its consumer loans, stating that rates tend to range from 10-15%. Kviku also refunds any investment and accrued interest should the loan be more than 30 days late. Investors looking at Kviku might also be interested in incentives such as sign-up a €20 sign-up offer, and referral schemes earning investors an extra percentage.

If the borrower is late with their loan payment, Kviku Finance will refund the invested principal and pay accrued interest when the loan is more than 30 days overdue. The company offers no secondary market.

Kviku Finance Management

Kviku Finance was launched in 2020 as a digital launchpad for a wider group of global loan originators owned by the Kviku Group. The original company was launched in Russia in 2013 by Nikita Lomakin (current CEO) and Veniamin Lipskiy (current CFO). Following a successful launch, Kivku expanded to Kazahkstan in 2018, Poland and Spain followed one year later. Kviku went on to launch in the Philippines in 2020 and in India this year. The company’s public plans show branches are expected to launch in Vietnam and Indonesia in 2023. 

‘Kviku Finance’ was only officially launched in 2020, but its loans have also been available on various P2P marketplaces’ since 2018, including Iovo Group, Bondster and Mintos.

Other than the two original co-founders with 31.44% ownership each, Denis Ermolaev owns 21.8%, with Evgeny Penkin owning the final 15.32%. The launch of Kviku Finance provided the rapidly expanding loan provider with a collective digital imprint; somewhere to market loans issued by its originators. 

The company’s assets grew almost fourfold across 2020, with steady growth across numerous metrics. Looking slightly broader, CAGR across loans provided grew 124% from 2017-2021; with a total of $158.9 million loans issued in 2021.

Special Considerations

For investors in the P2P lending market, portfolio history can be everything. Kviku fails to publicise past loan performance or active projects. Kviku Finance is still a fledgling branch of the Kviku Group, but the company appear profitable with ambitious expansion plans. The company also made clear remarks that the current situation in Russia hasn’t dented investor confidence.