Peer to Peer lending service Prosper is raising it’s fourth funding round. The company announced it is raising between 13.3 and 15.8 million US$. Prosper expects the deal to be closed by April 15th and says a LOI has been signed with new and existing investors.
Countries
Breaking News: Finansowo and Smava Poland Merge
P2P Lending services Smava und Finansowo.pl decided to join forces in the polish market. The deal took place on March 22nd; no details were announced.
The new service will start in May, led by Rafal Agnieszczak, owner of Finansowo.
Happy Anniversary: 3 Years Smava Lending
Smava.de launched 3 years ago and successfully established p2p lending in Germany. Since then about 25 million Euro (approx. 34.4 million US$) loans were funded. Smava gained nearly all positive feedback by lenders, borrowers and especially the media.
Smava will need to continue growing considerably in order to become profitable. Currently growth is limited by borrower demand. On the lender side there is much capital waiting to be invested.
One issue Smava will have to tackle in the future are the default rates that distinctly exceed originally forecasted values. So far these have not been a threat to growth because the ‘Anleger-Pools‘ mechanism, an insurance mechanism spreading losses resulting from defaults over many lenders, prevented major losses for single lenders. In the past years nearly all lenders achieved positive ROIs.
The P2P-Kredite blog has published a longer analysis today: ‘3 Jahre Smava Kredite – eine Bilanz‘ (in German).
Little Progress in MYC4’s Recovery Attempts
As reported in the past MYC4.com has serious operational problems making it an investment with negative ROI for the vast majority of lenders. MYC4 has taken measures to recover as much of the outstanding loan amounts as possible, but progress is very slow.
This is a quick update on the situation
Kenya / Provider Ebony:
The receivership has been in place for two months now, but has recovered only a small amount. The court case against Ebony Capital Ltd. is ongoing still awaiting a ruling. (see details)
Ivory Coast / Former providers Ivoire Credit and Notre Nation
The responsibility for collecting these loans has been turned over to TRIUM International in September 2009. In the 5 months since then TRIUM International collected 17,848 Euro. TRIUM has asked to be relieved of the contract as soon as possible (see details)
Senegal / Provider Birima
Repayments have been delayed. Birima cites technical problems and a bad economic situation in Senegal.
Uganda / Provider FED/CMC
FED seems to have the worst status. MYC4 reports that collections nearly stopped due to a lack of staff and working capital. Borrowers are said towithhold repayments in speculation on a collapse of FED/CMC.
MYC4 has defined 10 action steps for March and April. (see details)
People Capital Post Launch Figures
First figures about lending activity on p2p lending service for student loans People Capital (related articles: People Capital) which launched earlier this month say that so far five to six students received loans for a total of 100,000 US$ from 5 lenders with another 45 students awaiting funding.
Lenders must have accredited investor status to lend. Financial institutions can sign up as lenders, too.
More details in this New York Times article.
Renault Laplanche, Lending Club CEO Interview
Recent interview video with Lending Club CEO on FoxBusiness: