Bondora has been in business since 2009 and is one of the leading non-bank digital consumer loan providers in Continental Europe. The consumer loans that Bondora offers are marketed in Finland, Spain and Estonia through a fully digital process supported by advanced credit analytics and in-house servicing. Bondora has historically financed the loans it originates by selling the associated receivables to a retail investor base drawn from 40 countries around the world.
Bondora focuses on unsecured consumer loans with principal amounts of EUR 500 to EUR 10,000 and repayment terms ranging from three to 60 months. Bondora is licensed as a credit provider by the Estonian Financial Supervision Authority, the primary regulatory body in Estonia governing and overseeing banks, credit providers, credit intermediaries, insurance companies, insurance intermediaries, fund managers, investment and pension funds, investment firms, e-money institutions and payment service providers.
Bondora has a strong executive and operations team with backgrounds in consumer credit, retail banking and asset management. Aside from Management and Supervisory Board members, key shareholders include subsidiaries of Valinor Management LLC, a US-based private investment firm with more than $3.4 billion under management, and Global Founders Capital GmbH Co. Beteiligungs KG Nr.1, a subsidiary of Global Founders Capital, one of the largest shareholders in Rocket Internet.
Bondora strives to provide borrowers with a seamless and fast user experience, fair rates and transparent costs, and personalized offers. Bondora focuses on middle-income consumers who need mid-sized, mid-term financing that neither banks nor payday lenders are able to provide due to regulatory, balance sheet or technical restrictions.
Geographically, Bondora targets euro area countries that have not developed competitive credit markets owing to their size (e.g. Finland and Estonia) or adverse macro events (e.g. Spain), and hence have lower consumer debt to GDP ratios than elsewhere in the region, according to ECRI Statistical Package 2015 data.
The following table highlights Bondora’s milestones since founding the company:
|2008||Bondora is founded.|
|2009||Bondora establishes the first Nordic marketplace lending platform.|
|2011||Winner of the “Best Estonian E-service of 2011” award and a quarterfinalist at the World Summit Awards.|
|2012||Loan marketplace opened to retail investors across Europe, making Bondora the world’s first cross-border lending platform.|
|2013||Launch of loan products in Finland and Spain, making Bondora the first marketplace providing credit seamlessly across multiple countries.|
|2014 (Jan)||Raised EUR 1.3 million seed round, led by Global Founders Capital, a private investment vehicle of the Rocket Internet founders.|
|2014 (Apr)||The UK Financial Conduct Authority grants Bondora an interim license.|
|2014 (Sep)||First version of Bondora’s fraud detection process implemented.|
|2014 (Sep)||Winner of the “Alternative Finance Platform of the Year (EU)” and “P2P Consumer Platform of the Year (EU)” awards from AltFi, the world’s leading news site for the alternative finance space, which includes crowdfunding, P2P lending, marketplace lending and invoice funding.|
|2015 (Jan)||Rollout of scorecard and risk-based pricing, with the latter replacing auction bidding-based interest-rate setting.|
|2015 (Jan)||Raised EUR 4.5 million Series A round, led by Valinor Management LLC, a EUR 3.5 billion, US-based private investment firm, which was an early backer of Lending Club.|
|2015 (Jul)||Authorized as a consumer credit provider by the State Administrative Agency of Southern Finland to provide consumer credit in Finland.|
|2015 (Sep)||Bondora begins originating loans using its own balance sheet to comply with consumer credit legislation across the three locales where it operates.|
|2015 (Nov)||Receives runner-up award for “Alternative Finance Platform of the Year (EU) 2015” from AltFi.|
|2016 (Jan)||Bondora rolls out the second version of its scorecards and risk-based pricing, increasing the performance of its Finnish and Spanish models.|
|2016 (Feb)||Bondora opens up its API to all of its investor base, making Bondora the first marketplace in Europe with a public API.|
|2016 (Mar)||Licensed as a credit provider by the Estonian Financial Supervision Authority, the primary regulatory body in Estonia governing and overseeing all banks, credit providers, credit intermediaries, insurance companies, insurance intermediaries, fund managers, investment and pension funds, investment firms, e-money institutions and payment service providers. Bondora’s balance sheet model is extended, with credit risk partially maintained on the balance sheet.|
|2016 (Apr)||Bondora rolls out update to its pricing models designed to take account of adverse trends in the global business and economic climate.|
|2016 (May)||Bondora splits out and shifts its (i) debt-servicing activities to Servicer and (ii) loan marketplace activities to Capital in order to make its different activities legally and financially self-sustainable.|