Stikcredit Analysis

Launched in 2021, Stikcredit, formerly known as Afranga, is a marketplace for investing in loans. The platform connects investors with Bulgarian borrowers, with loans originating from the parent company Stik Credit JSC, incorporated in Shumen, Bulgaria. In December 2023, Afranga obtained its ECSP license to operate within the European Union. However, existing and new investors now access the platform through Skitcredit.eu, while Afranga is offline during the transformation process to comply with the ECSP license.^[1]

EU citizens or citizens who hold an EU residence permit can invest and fund their accounts upon passing the platform verification process. Since its beginning in 2021, Afranga, now Stikcredit, has raised approximately €57.88 million, averaging a monthly volume of €1.65 million.^[2] The platform has a community of 2,000 investors.^[3]

• Stikcredit facilitates EU investors in accessing loans from its parent company, Stik Credit JSC, which underwrites consumer loans for Bulgarian borrowers.
• Investors can choose from the two categories of consumer loans, including installment loans and short-term loans. The minimum investment is €10.
• Loan durations range from 26 days to 35 months, with an interest rate of 10%.
• Stikcredit offers a buyback guarantee for its loans. When loan payments are more than 60 days overdue.

Afranga, now Stikcredit, serves as an interface connecting investors in the European Union with loans issued by its parent company, Stik Credit JSC. The parent company acts as an underwriter for Bulgarian borrowers. Investors enter into loan agreements with Stikcredit, which facilitates lending to borrowers on the Bulgarian platform Stikcredit.bg.

Investors can choose from the two categories of consumer loans, including instalment loans and short-term loans. The minimum investment is €10.^[4] Loan durations span from 26 days to 35 months across the current campaigns.^[5] Investments are structured as amortized loans, where monthly repayments cover both the principal and interest, ensuring the loan is fully paid off by the end of the term. Stikcredit campaigns offer loan amounts ranging from €25.56 to €2,556.46.^[6]

Stikcredit offers a buyback guarantee for its loans. When loan payments are more than 60 days overdue, the loan originator repurchases the debt to ensure lenders recoup their investment and interest. These loans come from Stik Credit JSC’s funds, with the company keeping a portion on its balance sheets.^[7]

Stikcredit provides a secondary market to exit investments early, as well as an auto-invest feature for queuing up new investments available on the platform. Since Stikcredit offers loans from its Bulgarian platform, Stikcredit.bg, it is safe to assume they have some control over the supply of loans made available to investors on the platform.

Stikcredit does not deduct any taxes from interest income. However, investors are responsible for declaring their income tax in accordance with the legislation of their respective countries.^[8]

Among its active campaigns, Stikcredit offers a 10% interest rate. However, the platform has not disclosed any statistics regarding its loan portfolio delay rate, default rate, or the amount paid back to investors.^[9]

Stikcredit does not impose any fees on investors. Opening an investor account is free of charge, as is depositing funds into it and withdrawing to a bank account. Additionally, there are no service fees. However, on the fundraisers’ side, the platform has not disclosed any information regarding fees, as they depend on the agreement between the loan originator and the borrowers. The platform does not earn money directly, although it acts as an interface to connect investors to borrowers, whose loans have been issued by its parent company, Stik Credit JSC. The parent company generates revenue through the spread of interest income.

Svetlin Sabev is the sole owner of the platform Afranga ^10], which now operates as Stikcredit.eu. Previously engaged in consultancy at Vitol, the global energy and commodity trading giant, Sabev transitioned into strategic roles at Stikcredit. Yonko Chuklev, the current Chief Operating Officer, has a background in fintech, venture capital, and tech governance. Chuklev has been recognized in Forbes’ 30 under 30 list and has spoken at TEDx events. Also part of the team is Ivaylo Yovkov, who assumes the role of Head of Marketing, bringing prior experience from various marketing positions.

Stikcredit is collectively owned by three shareholders, Kristiyan Georgiev Kostadinov and Stefan Nikolaev Topuzakov, each holding 47% ownership, and Ivaylo Lazarov Todorov, who holds the remaining 6% stake in the company.

Stikcredit also lists its loans on the Mintos platform. To date, Stikcredit has originated over €24 million worth of loans on Mintos and currently maintains a loan portfolio valued at €2.9 million on the platform. The annual percentage rate charged by Stikcredit to borrowers ranges from 36% to 50%.^[11]

Stikcredit has raised a total of €156K in funding over 1 round on Seedrs, an Equity Crowdfunding round raised on Oct 30, 2020.^[12]

Since fiscal year 2020, Stikcredit has demonstrated solid revenue growth, primarily driven by its interest income and charges, increasing from BGN 9.52 million (€4.86 million) to BGN 22.89 million (€11.70 million) in FY23, representing a revenue CAGR of 33.96%. The company also reported profitability in FY23 with a net profit of BGN 5.73 million (€2.93 million), up from FY22’s BGN 3.95 million (€2.02 million). Stikcredit's net loan portfolio has remained relatively unchanged. The company has also accumulated a solid cash buffer of approximately €4.7 million, accounting for 56% of the outstanding debt, maintaining a healthy equity ratio of 57%.^[13]