UPDATE: DUE TO COVID-19 CIRCUMSTANCES GRUPEER HAS MADE THE FOLLOWING STATEMENT:
“Regretfully, we are forced to inform you that in the current circumstances it is not possible for us to continue operations as before with an objective cause out of our control. Therefore, we hereby notify you that all payments to investors of Grupeer are currently suspended due to emergency state declared in European Union and worldwide regarding COVID-19 pandemic crises”
We here at Value Nomad will be monitoring these situations closely and will provide updated information as it arises. In the meantime, we cannot recommend investing with Grupeer at this time.
If you are thinking of investing within P2P, check 0ut an up to date list here Best P2P lending sites in Europe.
Grupeer review: let’s check one of the biggest peer to peer lending websites in Europe and analyze its functionalities in this post below
Are you looking for a reliable peer to peer website to invest? In our Grupeer review we will understand why this peer to peer platform is one of the fastest growing in the European P2P market.
Peer to peer lending is booming, and there is no doubt about it. The relatively young industry is growing by two digits every year in Europe and in the rest of the world, and it is easy to understand why. While savings account and traditional banking investments pay low returns, peer to peer lending is a good alternative for investors to earn more and diversify their portfolio.
One of the biggest players in this industry is Grupeer. The peer to peer lending platform hails from Latvia, and is one of the fastest growing business in the peer to peer lending niche.
As of 2019, the company reached a mark of more than 10 millions euros in issued loans, with average earnings of 14.28%. It also has more than 7800 investors registered, a number that is constantly growing. That is a huge growth from just 2600 users in September 2018, the last time I updated this article.
Let’s learn more below in our Grupeer review about what the platform has to offer and how to invest using it.
Grupeer Office Visit in Riga
In Early 2019 I had the chance to visit the Grupeer office in Central Riga (Latvia) after an invitation from Viktorija Bondarjonoka, from the marketing department. The visit was an eye opening experience for me in regards to the possibilities Grupeer is bringing to peer to peer investors globally.
In this visit I discussed with several members of the team about a number of aspects regarding running the business. Among those, the IT infrastructure, the risk assessment for projects and loan originators, marketing strategies and future plans. The team seems extremely well integrated and the company is growing at staggering rates.
Among many of the team members I had the chance to meet were Alla Kisika, founder of Grupeer and Vladislavs Filimonovs, COO. Both seemed very passionate about the fintech industry, with broad market understanding and great expansion plans for the company.
Here is a photo of the visit, featuring Alla and Viktorija:
Opening an Account in Grupeer
The first step to invest in Grupeer is to open an account. All you need to do is an email account and you can instantly open the account. You can immediately access all available loans and development projects, with all its details such as interest rate and loan period.
How to Invest in Grupeer
Investing in Grupeer is a relatively seamless and simple procedure. You need to open an account, pass the AML/KYC and then transfer money to your Grupeer account. Once the money is available in your account, you can choose manually in which investment you want to put your available funds. Grupeer also has an auto-invest feature (more on that below).
Types of Investment Available at Grupeer
Grupeer has two main categories of investment. The first is focused on the business peer to peer loans that you find in most platforms on the niche. Grupeer also has development projects, in which you can earn for investing in real estate.
Real Estate Developments on Grupeer
Real estate developments are, in my opinion, the most interesting investment opportunities currently available on Grupeer. There are not too many real estate projects available for funding at the same time, but the ones which are, are pretty interesting.
Another interesting aspect of Grupeer is that you can see the types of development available for investment even without opening an account. You can check the currently available option here. You also have very thorough information available on each project, with ROI, LTV Ratio, etc.
Business Loans on Grupeer
Grupeer also has a wide variety of business loan for peer to peer lending investors. Each one of them also count with a company overview and what will the funds be used for. It also features information on the return on investment, duration of the loan, etc.
Grupeer Auto Invest Tool
A tool that is getting popular among many peer to peer lending platforms. It is available o Mintos (you can read more about it in our Mintos review) and it is also available on Grupeer.
The Auto Invest tool is ideal if you don’t want to manually browse for loans or you do not want to manually reinvest that has been already paid back on the platform.
The Auto Invest is pretty flexible, and allows the user to choose a wide range of criteria to automate his investments. You can choose the interest rate amount, the term intervals, the limit of the amount to be auto-invested and the maximum amount per project. As we can see below:
How Much Can you Earn on Grupeer?
By the time this article was published, Grupeer had a net yearly return of 14.54%. However, this may change for every investor, depending on a number of factors. Inside Grupeer, it will depend on which investments you will choose on the platform itself.
By the time this article has been published, all projects on Grupeer had a buyback guarantee. I consider that as extremely important in any p2p lending review, to minimize the risk on the investments.
Another aspects you should consider are: how much your bank will charge you to send and receive money. Ideally, I recommend choosing a bank that charges flat fees per transaction, instead of a %, especially if you want to transfer higher amounts to peer to peer platforms. Finally, income from peer to peer lending is taxable (in most countries), therefore you should consider how much of taxes you must pay for the accrued interest in platforms like Grupeer.
Who can Invest on Grupeer?
Another important factor when choosing a peer to peer investing platform is whether it is available to your jurisdiction. Grupeer is currently available for both corporations and individuals with a bank account in the EEA Area (plus Switzerland). If you don’t have a bank account in the European Economic Area you can still contact them to see whether it is possible to invest in the platform from your jurisdiction.
- Great average return on investment.
- Diversify projects and loans to invest, including real estate.
- Auto invest is available.
- Limited number of real estate projects available.
Grupeer: Is It Safe For Investors?
In my visit to the Grupeer office in 2019 one of the discussions was about risk assessment in the company. As everybody knows, risk is a key factor for every peer to peer lending platform’s success. Keeping default rates low, and ideally at zero are one of the main challenges in the industry.
While in the Grupeer office, one of the most interesting aspects of my visit was a brief chat with Edgars Mass. The current Chief Business Development Officer at Grupeer told me about how the company is strict while selecting new projects.
The team’s experience in the banking sector definitely helps Grupeer to be one of the safest peer to peer lending platforms currently. I believe Grupeer is extremely safe for investors and this trend is likely to continue.
Grupeer Review: Verdict
Grupeer is a great peer to peer lending and investing platform, with a good number of opportunities to invest. The platform is intuitive, and can be a great option if its your first p2p investment, or if you want to diversify your portfolio.
In 2018 I already had a very positive opinion of Grupeer. That was mainly because of its easy UI and the attractive real estate projects that were, in my opinion, the best available at the time. After my visit to the office in Riga in 2019 my impressions regarding Grupeer just got better.
It is clear that the team running the company is extremely competent, which is reflected by the company growth. The transparency of Grupeer definitely stands out as a positive factor, especially when many peer to peer lending companies are considerably less transparent.
Other Peer to Peer Lending Resources
If you are considering investing in peer to peer platforms? You may want to check some of our other guides and reviews on this topic. There are many peer to peer lending and investing platforms currently available, and you can diversify your interest income by using several of them simultaneously. Check our post on the best peer 2 peer lending platforms in Europe, and the best real estate crowdfunding platforms in Europe.
Are you already investing in Grupeer or in any other peer to peer lending platform? Leave your thoughts and questions about this Grupeer review below.