Loanch Analysis

Loanch is a debt investment platform based in Hungary. The platform resells short-term consumer loans from loan originators located in Indonesia and Malaysia. Loanch is currently expanding to Sri Lanka. Since its launch in early 2024, the platform has attracted more than 1,769 investors and facilitated over €3.73 million in investments.^[1]

• Loanch offers investments in short-term consumer loans from loan originators in Indonesia and Malaysia, with a minimum investment starting at €10.
• Investments are unsecured, although the platform offers a 30-day buyback guarantee.
• The debt investments offer interest rates ranging from 13% to 13.6%, but the platform has not yet disclosed its historical rates of delays and defaults.

Loanch operates as a platform that connects investors across the European Union and the European Economic Area with loan originators based in Indonesia and Malaysia. The platform is also in the process of expanding to Sri Lanka. Loanch offers investments in short-term consumer loans but is not regulated under any financial services license. Investment amounts range between €10 and €500, with a minimum starting at €10. The investments are categorized into two types:

• Short-term loans
• Installment loans

The debt investment duration ranges from 1 to 3 months. Loanch provides debt instruments structured as bullet loans, with both principal and accrued interest paid at maturity.^[2] While these loans are unsecured, they are backed by a 30-day buyback guarantee.^[3] If a borrower fails to repay on time, the loan originator is obligated to refund the investment within 30 days after the due date. Investment returns are taxed as capital gains. Loanch facilitates payments, but investors are responsible for reporting taxes in compliance with their country of residence. The platform does not offer a secondary market.

Loanch offers effective annual interest rates ranging from 13% to 13.6%.^[4] However, the platform has not yet disclosed information regarding delays or default rates. Investors are not charged any fees. While details about borrower fees are not provided, they likely vary according to the loan originators’ terms. It is assumed that Loanch generates revenue from the spread between the interest rates offered on the platform and those set by the loan originators.

Nik Sinickis, the platform’s CEO, is a fintech entrepreneur with deep expertise in asset management, project management, and insurance. Supporting him is Antons Lukjanenko, the Investor Support Manager, who also serves as an HR Support Specialist at Tietoevry in Finland. Arta Anaite, a CAMS Certified AML/CFT specialist with many years of experience, ensures the platform’s regulatory compliance. Additionally, Loanch benefits from partnerships with the Indonesian law firm KARNA, the tax consulting firm Orzora Partnership, and the Czech IT service provider Finriser.

Loanch is developed by RiseTech KFT, a company established in Bulgaria in 2022. The ownership is attributed to a single, undisclosed founder, with a subscribed capital of HUF 3 million (€7,630).^[5]

In August 2024, Loanch saw steady growth with notable increases in both capital raised and investor numbers. New investments reached about €769,000, up 16.9%, while the platform gained 280 new investors, a 19.5% rise. Overall, Loanch’s funding reached a total of more than €3.7 million, whilst investments now stand at around €5.3 million.^[6]

Loanch has not disclosed its financial statements; however, the platform has provided the financial reports of its loan originators:

• The Indonesian loan originators started 2024 with a -3% gross profit margin in January. This improved to double digits from February to April, reaching 11% in February and 10% in March and April. By May and June, the margin decreased to 7%, while the revenue margin stayed between 35% and 42%.^[7]
• The Malaysian loan originator showed a strong gross profit margin of 13% to 18% in Q1 and Q2 2024, with a stable revenue margin of around 23% to 25%.^[8]