Doing so, we have discovered that things seem to be going rather well for Geldvoorelkaar, the latest acquisition of Europe’s leading P2P platform TrustBuddy. Geldvoorelkaar (GVK) is active in the field of SME P2P lending, i.e. loans to small and medium-sized enterprises. GVK has around 60-65% of the market in the Netherlands and holds a license to conduct SME and consumer lending. In fact, it is the first crowdfunding platform with an integration to Bureau Krediet Registratie (BKR), a credit agency that all retail banks use in Netherlands.
In the presentation material that TrustBuddy published in connection with the acquisition of GVK and Prestiamoci in late November 2014, it is stated that GVK had funded EUR 42m to date and EUR 20m in 2014 until that point. TrustBuddy and GVK also included a forecast for full-year 2014 with lent out capital to reach around EUR 22m and an EBIT margin of 44%. The profitability of GVK’s SME business is impressive indeed.
It is also mentioned that GVK had funded EUR 2.6m of SME loans in October 2014 alone, implying y-o-y growth of 47%. What is interesting is that GVK does actually published the amount of loans funded on its website. As of today, the number has gone up to EUR 48,523,100:That would then imply that GVK has funded roughly EUR 6.5m in the period between November 13th, 2014 and January 23rd, i.e. within 71 days (on average EUR 91,549 per day). Remember, in October (31 days) the company funded EUR 2.6m (average of EUR 83,871 per day). That means that GVK has increased the growth of its funding activity even further. In fact, the average amount funded per day has increased by 9% and that is including the extended holiday period this year, i.e. usually a rather slow period.
Our observation also makes it highly likely that the forecast for FY 2014 has been exceeded. As mentioned above, the forecast was for lent out capital to reach around EUR 22m, implying some EUR 2m for the period November 13th until December 31st (48 days). Using the average loan amount per day, calculated above, the actual total amount of lent out capital is likely to be closer to EUR 24.4m. That’s 11% above guidance.
So there seems to be all reason to be excited about TrustBuddy’s acquisition of GVK, which opens up a European SME market opportunity. TrustBuddy has already stated that it will introduce the product across the Nordic and European market. The market entry into Belgium is already being planned, on a preliminary basis, by GVK. Belgium seems very well suited given that 59% of the population is Dutch speaking. Furthermore, ING bank is present in Belgium and a bank integration with ING is already in place in the Netherlands.
To put it in a nutshell: there is a lot to look forward to for TrustBuddy and its shareholders.