Scramble Analysis

Scramble is an Estonian, non-licensed lending-based investment platform launched in August 2021. It serves as an online platform connecting investors with small business debt in the UK and consumer goods brands in continental Europe. Scramble also acts as a loan originator, originating loans primarily from Portugal, the Netherlands, and Germany.

Scramble does not specify the eligibility criteria to become an investor on their platform. However, they require a bank statement copy to confirm ownership of the account where transactions will occur.^[1] Since its launch, Scramble has raised more than €4.55 million, with an average monthly volume of €300,000 in the past 12 months.^[2] The platform boasts a community of over 2,800 investors.^[3]

• Investment begins at €10, with borrowers guaranteeing up to 40% repayment.
• Among the current rounds, investments range from €1,300 to €87,100, with a loan duration of up to 6 months, extendable for up to 24 months.
• Scramble advertises two groups of loan terms. The first group, Group A, advertises an interest rate of up to 12.4%, while Group B advertises an interest rate of up to 25%.

Scramble connects investors with small businesses in the UK and continental Europe. The platform offers investments in European consumer goods brands, structured as balloon loans, where interest is paid and the principal is returned at the end of the term. Investments start at €10. Scramble does not provide a buyback guarantee. However, each loan involves an upfront fee and monthly repayments, with borrowers guaranteeing up to 40% repayment through their personal income for up to 5 years.^[4]

Among the current rounds, investments range from €1,300 to €87,100, with a loan duration of up to 6 months, extendable for up to 24 months.^[5] Scramble does not provide an auto-invest feature or a secondary market. The platform does not withhold taxes on interest earned. Investors are responsible for complying with the tax regulations of their respective countries.

Scramble advertises two groups of loan terms. The first group, Group A, advertises an interest rate of up to 12.4%, while Group B advertises an interest rate of up to 25%.^[6] The platform has paid back investors more than €3.15 million, corresponding to 61% of its total loan portfolio. Scramble has yet to disclose detailed information regarding its loan repayment delays; however, the platform reported that more than 84% of its loans have been repaid on time. Scramble has not disclosed any information or data regarding its loan portfolio default rate.^[7]

Investors do not incur any fees on the platform. However, Scramble charges fundraisers between 6% and 9% for 6 months, translating to an annual cost of capital ranging from 16% to 20%. Additionally, Scramble imposes a flat fee of 1% if borrowers miss their loan repayment, along with undisclosed late charges. It is assumed that Scramble generates revenue from fees and interest rate spreads.^[8]

Kamil Kurmakayev is the Founder and CEO of Scramble. He brings extensive entrepreneurial experience to his leadership role, having previously served as the CEO at iCare Benefits and as the Co-founder of Wikimart. Working alongside him is Irina Kurmakayeva, the COO, who oversees marketing and strategic planning. Before joining Scramble, Irina gained valuable experience in Moscow as a Digital Marketing Strategist and as a Strategic Planner Trainee at Leo Burnett Vietnam. Ruslan Klymenko, currently serving as the Head of Growth at Scramble, brings over a decade of marketing expertise to the team. Notably, he served as the Chief Marketing Officer at Dinero.ua before joining Scramble.

The company behind the platform is Scramble OÜ, founded in 2020 with its headquarters in Tallinn, Estonia. The Estonian company is 100% controlled by Scramble Ltd in the UK, the sole shareholder. Kamil Kurmakayev serves as the only Board member of the company.

Scramble has raised more than $964,000 in funding through 12 rounds. Their most recent funding round, a Seed round, was secured on March 16, 2024. The platform is backed by 9 investors, with FJ Labs and Michael van Swaaij being the latest additions.^[9]

Scramble has yet to unveil its annual report for 2023. Since its inception, the company has struggled to reach profitability. In FY20, Scramble reported a net loss of -€71,333, which increased in FY21 to -€192,063. The trend persisted into FY22, with the company recording a continued loss, resulting in an annual loss surpassing half a million euros. ^{[10] [11]}