The following table lists the loan originations of p2p lending marketplaces in April. Lendinvest leads ahead of Ratesetter and Funding Circle UK. I track the development of p2p lending volumes for many markets. Since I already have most of the data on file I can publish statistics on the monthly loan originations for selected p2p lending platforms.
Last month Younited Credit (formerly Prêt d’Union) originated first loans in Italy. Geoffroy Guigou told P2P-Banking.com, Younited Credit had a great start, with 416,500 Euro loans originated.
Table: P2P Lending Volumes in April 2016. Source: own research Note that volumes have been converted from local currency to Euro for the sake of comparison. Some figures are estimates/approximations. *Prosper and Lending Club no longer publish origination data for the most recent month.
French p2p lending marketplace Prêt d’Union has announced a capital increase of 31 million EUR subscribed by new investors, including Eurazeo and Pierre Kosciusko-Morizet, as well as its historical shareholders. The total funding since its commercial launch in December 2011 has thus to €50 million. This new fundraising will be used to accelerate its international launch, scheduled for early 2016. Alongside its founders, employees and business angels, Prêt d’Union welcomes Eurazeo as a new shareholder, which joins a solid consortium comprising Crédit Mutuel Arkéa, Schibsted (shareholder in France of the Leboncoin.fr website), AG2R La Mondiale, Weber Investissements (holding company of the founders of Financière de l’Echiquier) and Kima Ventures, the investment fund of Xavier Niel and Jérémie Berrebi.
Prêt d’Union is currently the first and only internet peer-to-peer lender to be certified as a ‘credit institution and investment service provider’ by the Autorité de Contrôle Prudentiel et de Résolution (French Prudential Supervisory Authority).
‘With loans of €200 million granted in just over 3 years, we have achieved a lending rate of 15 million EUR per month or an average monthly growth rate of 6%. This new fundraising, which was widely oversubscribed, marks a new growth phase for Prêt d’Union. It will enable us to commence our European expansion and pursue our growth in France, through numerous hirings, the launch of innovative technology projects, mainly involving Big Data, and ongoing investments in customer experience”, explained Geoffroy Guigou and Charles Egly, Prêt d’Union co-CEOs.
PRÊT D’UNION is the first and sole peer-to-peer lending platform accredited by the French Central Bank.
Thanks to an innovative disintermediation model, PRÊT D’UNION enables private individuals and institutional investors to lend money to borrowers directly through a secured bond marketplace, offering above-market returns on savings and low interest rates on consumer loans. Each party gets a better deal, bypassing mainstream financial institutions.
PRÊT D’UNION was founded in October 2009. In March 2011 the company obtained a broker license from the AMF (Autorité des Marchés Financiers – SEC equivalent); in July 2011 the company obtained a credit institution license from the French Central Bank. The marketing campaign has been launched in January 2012.
In 26 months the company has issued over €80 million in loans (€11 million in 2012, €43 million in 2013). For 2014, Pret d’Union plans to issue over €90 million in new loans.
Since its inception, PRÊT D’UNION has raised €18 million in equity. PRÊT D’UNION also enjoys the benefits of the French Research Tax Credit (CIR).
What are the three main advantages for lenders?
Pret d’Union propose 4 types of investment products:
– Fund #1 (Conservateur Court – Conservative & short duration) which invests in consumer credit with initial maturities of 2 years and 3 years granted to A Borrowers.
– Fund #2 (Conservateur Long – Conservative & long duration) which invests in consumer credit with initial maturities of 4 years and 5 years granted to A Borrowers.
– Fund #3 (Equilibré Court – Balanced & short duration) which invests in consumer credit with initial maturities of 2 years and 3 years granted to B Borrowers.
– Fund #4 (Equilibré Long – Balanced & long duration) which invests in consumer credit with initial maturities of 4 years and 5 years granted to B Borrowers.
The format of our funds is pretty similar to LC Advisors’ funds. However we added a few features: an ISIN code (FR0011605690 for Fund #2) and weekly quotes on Bloomberg (ticker PDUALNG:FP).
Yields for Lenders range from 4.4% p.a. to 7.4% p.a.
Chart 1: Purpose of loans (PU Conservateur Court)
What are the three main advantages for borrowers?
For Borrowers, the three main advantages are:
– better rates,
– fixed interest rates and constant monthly repayments (no revolving loans),
– A quicker process.
Which marketing channels do you use to attract lenders and borrowers? Can you share the current CPA?
To attract borrowers we mainly use: emailing, aggregators, banners, affiliates … (CPA below 200€ per borrower).
French p2p lending service Prêt d’Union raised 3.3 million EUR (approx. 4.2 million US$) in a new funding round from new investors (including Weber Investment, the holding of the two founders of la Financière de l’Echiquier and AG2R La Mondiale) and from its previous shareholders. The company has raised a total of 8.1 million EUR since its inception in October 2009. Along with PRÊT D’UNION’s founders, employees and private investors, the company shareholders are CREDIT MUTUEL ARKEA (34.9%), KIMA VENTURES (5.2%), Xavier Niel and Jeremy Berrebi’s fund (4,2%), Weber Investments (6.4%) and AG2R La Mondiale (2.9%).
“The launch phase was successful. With more than 2.5 million EUR of loans granted in less than six months, we are currently at a rate of over 1 million EUR of credit granted per month, which amounts to a monthly growth of 40%. This new round of financing, … , is an important milestone for PRÊT D’UNION. It will enable us to accelerate our business development through new recruitments, improve our customer service and reach for new customers,” explained Charles EGLY & Geoffroy GUIGOU, respectively CEO and COO at Prêt d’Union.
Kimaventures has announced investing in Pret d’union, a p2p lending company in France, which according to it’s website, aims to launch in 2011. Unconfirmed sources state that the funding round raised 500,000 Euro – no information which investors participated apart from Kivaventures is available.
CEO Charles Egly is a former banker at BNP Paribas. While the business model was drafted in September 2008, the company was founded in October 2009 and received regulatory approval in December 2009.
Earlier this year French p2p lending service Friendsclear raised 522,000 Euro from several investors including Arkeon Finance.
EDIT: Additional information provided by CEO Charles Egly: – as of today, Prêt d’Union raised ca. 1 M€ from Business Angels and Kima Ventures. – in december 2009 Prêt d’union filed a propectus to get a credit institution licence. Prêt d’Union has not yet received the licence and is still in discussion with the Bank of France.