Esketit Analysis

Esketit is an Irish, non-regulated peer-to-peer lending platform. It was founded in early 2021 by the founders of AvaFin Holding, which is also the primary loan originator for the platform. Esketit operates as a bridge connecting investors with borrowers from various consumer loan originators, mainly from Spain, Mexico, Latvia, the Czech Republic, and Poland.^[1]

Individuals with a bank account from EU or EEA countries can invest on the platform. Esketit also offers an alternative option via cryptocurrency accounts or wallets, allowing fund deposits in stablecoins such as USDC or USDT. Since its launch, the platform has raised more than €517.69 million, with an average monthly volume of €24.43 million in the past 12 months.^[2] Esketit boasts a community of over 20,540 investors.^[3]

• Investment begins at €10, with select loans offering a buyback guarantee for missed payments exceeding 60 days.
• Esketit has few primary market loan investments available, as most are quickly bought by the auto invest feature.
• The platform's secondary market lists over 13,250 loans.

Esketit connects investors with borrowers primarily across Spain, Mexico, Latvia, the Czech Republic, and Poland. The platform offers investments in personal loans, structured as interest-only loans, where the interest is paid monthly, and the principal is returned at the end of the term. Investments start at €10. Esketit features a buyback guarantee for some of its offerings; however, not all loans are covered. If payments are missed for more than 60 days, the loan originator will repurchase the investment.

Esketit currently lists only one investment of €150,000 on its primary market with a loan duration of 2 years. However, the platform has a very large listing on its secondary market, with more than 13,250 loans available. Esketit also provides an auto-invest feature. The platform does not withhold taxes on interest earned. Investors are responsible for complying with the tax regulations of their respective countries.

Esketit advertises a 12.27% interest rate, but few primary market loans are available due to auto invest. The platform has paid back investors more than €7.70 million since its inception but does not provide any information on the historical net returns. Esketit reports that 6% of its outstanding loans are late by 1 to 15 days, 5% are late by 16 to 30 days, and 6% are late by 31 to 60 days. However, the platform has not clarified its default rate statistics.^[4]

Investors do not pay any fees on the platform. Borrower fees are not disclosed and may vary based on the loan originator. It is assumed that Esketit generates revenue from fees collected from borrowers.^[5]

Davis Barons is the co-founder of AvaFin Holding (formerly Creamfinance Group), Esketit’s main loan originator and the driving force behind the platform. He has spearheaded the group’s global expansion and product development, establishing it as a leading fintech firm. Matiss Ansviesulis, also a co-founder, has led AvaFin to significant growth, securing over €70 million in revenue and €100 million in capital. Vitālijs Zalovs, the CEO of Esketit, brings nearly a decade of finance experience, focusing on team management and industry knowledge. Supporting him is Renars Upitis, the CMO, who has 15 years of experience in digital marketing, enhancing the growth of fintech companies. Daina Ruka, the CFO, has a solid background in finance and accounting from her tenure at KPMG.

AvaFin is supported by VC Flint Capital and Capitec Bank, which contributed €18 million in a Series B equity investment. Founded in 2012, the company has consistently claimed a profit-focused approach, boasting a record of no investor losses or payment delays.^[6]