We’re sharing the audited Mintos Holdings Consolidated report for 2020, a document encompassing the whole group’s activities, including AS Mintos Marketplace. In this report, investors and stakeholders can find all relevant information about the company’s business results in the dynamic year 2020.
In this document audited by KPMG Baltics, you can find a detailed overview of the Financial report, along with the Management report written in collaboration with Mintos co-founders CEO Martins Sulte and CFO/COO Martins Valters. The Management report provides an outline of Mintos’ most important business results. It also includes a timeline of events that marked our work in 2020 and an overview of happenings that influenced the way we operated last year.
Highlights from the Mintos Management report
January and February 2020 were very successful. We saw a record volume of loans funded and a record number of new joiners on the marketplace. However, the outbreak of the COVID-19 pandemic in March changed market dynamics worldwide, and Mintos wasn’t an exception. Most of our plans for growth and expansion scheduled for 2020 had to be changed, as we needed to make sure that Mintos’ operations would be sustainable in the eye of the economic downturn. Our teams in Riga, Berlin, and Vilnius fully exercised the Mintos remote-work friendly policy, and 161 Mintos employees worked remotely throughout most of the year.
Initial reactions to the COVID-19 pandemic resulted in investors waiting for a clearer outlook on the future, meaning many investors paused or reduced their investing activity. Because of the same uncertainty, fewer new investors joined Mintos in these months, compared to the pre-pandemic period. Lockdowns in countries affected borrowers’ loan repayment abilities, and underperforming loans increased on a global level. Eventually, these developments caused a drop in investment volumes on Mintos. As many risks materialized simultaneously, our team focused on working with the pandemic’s effects on our marketplace. We formed a new team for recoveries and continued developing and maintaining new communication channels to enhance transparency and provide timely feedback to our investors. Despite setbacks during this period, more than 80% of the funded loan portfolio continued to perform and generate returns for investors.
We closed the year with €10.19 million in revenue, a 10.9% growth compared to the year before. Our losses in 2020 amounted to €1.967 million. This loss is largely the result of investments we continued to make in growth and product, especially in the first quarter of the year.
Over 2020, we developed and implemented many projects, starting with the launch of the Mintos mobile app in February. In spring, we submitted formal applications for an Investment Firm and Electronic Money Institution license with the Financial and Capital Markets Commission (FCMC) in Latvia and continued putting significant effort into Mintos becoming a fully regulated marketplace.
In November, we launched a crowdfunding campaign on the Crowdcube platform. In 10-days of the campaign, we raised more than €6.550 million, backed by 6 147 investors. This was one of the largest crowdfunding amounts ever raised on Crowdcube in continental Europe.
We closed the year with AltFi’s “People’s Choice Award” 2020, which is the fifth consecutive year we’ve received this award, voted as the marketplace of choice by our loyal community.
This is only a fragment of what you can find in our Management report. For detailed information, you’re welcome to read our Consolidated Annual report for 2020, which is fully available here.
Please note that this report is an audited Consolidated annual report. Shareholders will have an opportunity to approve this report in the meeting scheduled later in June 2021.
You can also find all other Mintos annual reports from 2015 onwards on our Investors relations page.