Crowdfunding platform Fellow Finance aims for rapid growth after IPO
09/10/2018 14:19
By Jussi Rosendahl
HELSINKI, Oct 9 (Reuters) - Finnish crowdfunding platform
Fellow Finance is targeting fast international growth after a
successful initial public offering (IPO) in Helsinki, its chief
executive said.
Founded in 2013, the company was valued at 55 million euros
($63 million) by the IPO which closed on Tuesday and was more
than two times oversubscribed. The stock is due to start trading
on Wednesday.
Fellow Finance is among the first European peer-to-peer
financial technology companies to be listed, following Funding
Circle's FCH.L London IPO last month. urn:newsml:reuters.com:*:nL8N1WE0ZD
The Finnish company's digital platform brokers peer-to-peer
loans by private individuals and businesses. It currently
operates in Finland, Sweden, Germany and Poland.
Unlike many of its competitors, Fellow Finance's digital
lending platform allows investors to invest in both consumer and
company loans.
A large part of its revenue comes from borrowers' fees.
Last year sales grew 55 percent to 8.7 million euros with an
operating profit of 2.5 million euros.
This year, revenue is seen to be more than 12 million euros
and operating profit to stand between 3.1 and 3.6 million euros.
"We have grown remarkably in recent years and we see that
growth continuing, both in existing markets as well as in new
regions (in the EU)," CEO Jouni Hintikka told Reuters.
"The low-rate environment is bringing investors to us, while
borrowers are interested in our ability to arrange loans quickly
and easily."
With more than 300 million euros of brokered loans so far,
Hintikka said Fellow Finance is the largest crowdfunding
platform in Northern Europe. Rivals in the region include
Sweden's Lendify and Germany's Auxmoney.
Continental Europe has lagged behind Britain, the United
States and China in crowdfunding and alternative finance because
of its large number of small countries with different
legislation and languages, Hintikka said.
"Finnish crowdfunding law has boosted the market (here) for
a couple of years now and the same is likely to happen in
continental Europe in future," he said, referring to EU plans
for harmonising the legislation.
Fellow Finance raised about 10 million euros of gross
proceeds from the IPO while owners such as asset manager Taaleri
TAALA.HE also sold some shares.
"Fellow Finance's investment profile is a thoroughbred
growth company ... The platform has proved is scalability in
Finland and is already very profitable," Inderes Equity Research
said in a report.
($1 = 0.8714 euros)
(Reporting by Jussi Rosendahl
Editing by David Goodman)
((jussi.rosendahl@thomsonreuters.com; +358 9 6805 0248; Reuters
Messaging: jussi.rosendahl.thomsonreuters.com@reuters.net))