Profitus Analysis

Profitus is a Lithuanian real estate investment platform that holds a crowdfunding investment license from the National Bank of Lithuania. The platform was launched in August 2018. Profitus offers investors access to business loans and real estate mortgages in the Baltic region, primarily from Lithuania and Estonia.

Both individuals and legal entities can invest on Profitus. The eligibility criterion to become an investor on the platform is to have a bank account.^[1] Since its launch, Profitus has raised more than €177.8 million, with an average monthly volume of  €6 million in the past 12 months.^[2] The platform boasts a community of over 38,027 investors.^[3]

• Investments start at €100, with loans secured by real estate mortgages and possibly personal guarantees.
• Among the active campaigns, investments range from €90,100 to €500,000, with 9 to 15 months loan durations.
• Profitus offers an average nominal interest rate of 9%.

Profitus is a real estate crowdfunding platform that offers investments in real estate mortgage loans and business loans backed by real estate categorized into three products:

• Real estate development projects
• Business loans secured by real estate
• Real estate rental projects

Loans are secured with real estate mortgages and may be backed by personal guarantees.^[4] The platform pays interest quarterly, and the principal is returned at the end of the term. Investments start at €100. Profitus offers a secondary market and an auto-invest feature.

Among the active campaigns, investments range from €90,100 to €500,000, with loan durations spanning from 9 to 15 months.^[5] Profitus does not withhold tax on interest earnings. It is up to investors to comply with their respective country’s tax regulations.

Profitus offers an average nominal interest rate of 9%.^[6] The platform has returned a total of €119 million to its investors, representing slightly more than 67% of its loan portfolio. Profitus reports that 3.27% of the loans in its portfolio are considered late; however, the platform does not explicitly specify what constitutes a late loan payment. Moreover, Profitus has not disclosed the default rate of its loan portfolio.^[7]

​Investors do not incur any platform usage or account administration fees; however, there is a transfer of claim fee when investors need to sell their investments on the secondary market. Profitus applies various fees to fundraisers, such as 0-1% for application administration, 2-5% (minimum €1,300) for contract conclusion, 0.1-0.2% (minimum €1,300) monthly for contract administration, and additional fees. It is assumed that Profitus generates revenue from fees and interest rate spreads.^[8]

Viktorija Cijunskyte is the founder and current director of Profitus and the co-founder of the PropTech Lithuania association, promoting technology in real estate. Before Profitus, she founded and chaired Victory Funds and has been a partner at UAB CITUS Constructions since 2016. Her extensive investment and construction experience makes her a key figure in Lithuania’s real estate sector. At her side, Lina Maskoliūnė, Chief of Strategic Growth, was previously the Business Unit Director for Technopolis Plc in Vilnius from July 2013 to May 2021, and the Managing Director at Technopolis Ozas. She also served on the Board at NT Valdos UAB. Bianka Semaškė is the platform’s Chief Technology Officer.

The company behind the platform is UAB Sutelktinio Finansavimo Platforma PROFITUS, founded in 2017 and headquartered in Vilnius, Lithuania. Profitus has not disclosed its financial statements.^[9]