It seems that Grupeer might is a scam. There is a lot of evidence that makes me think you already now can count your investment lost. If you haven’t invested in Grupeer yet, then hold back and wait for some kind of official announcement or clear indications from Grupeer themselves (e.g. they will file for bankruptcy, website going down, lawsuits starts, etc) before losing money to some dumb investment.
Now that I am investing in different P2P lending platforms. I wanted to make a Grupeer review to figure out if I want to invest in the Grupeer platform, so I will do the research so you can figure it out too. Since I am most interested in European P2P lending platforms, I thought Grupeer was a great platform to review.
The Grupeer review is 100% unbiased and based on my personal findings. In the Grupeer review, I will give my personal opinion of their service. I will include the subjective aspects which I personally like, and the objective facts – like statistics.
Grupeer has a buyback guarantee if the borrower fails to pay within 60 days. They offer satisfying returns of up to 15%. Grupeer has a simple layout. Furthermore, their auto-invest tool is easy to use. I will personally be investing on the platform in the future!
- Loan types: Business loans and development projects
- Loan terms: 0-76 months
- Interest rate: 10%-15%
- Auto-invest: Yes, easy to use
- Buyback guarantee: Yes
- Fees and costs: No fees
- Minimum investment: €10
- Currencies: EUR
- Secondary market: No
- Sign-up link: www.Grupeer.com
What is Grupeer?
Grupeer.com is a Latvia based p2p lending platform founded in 2016. They are located in Riga, Latvia and support three languages, German, Spanish and English.
Grupeers projects have an average return of 13,46 %. Currently, Grupeer has funded over 48.000.000 EUR worth of loans. There are over 12.000 investors on the platform from over 80 countries. Grupeer issues all loans in EUR, with a minimum investment of just 10 EUR.
Where Grupeer is quite unique compared to other platforms, are their p2p lending offerings. Grupeer has three different types of p2p lending opportunities:
- Traditional (business) loan deals
- Development projects
- Grupeer stability fund
Each of the three investment types offers different aspects of investing.
Investment types on Grupeer
The three different types of investments are all based on p2p lending. Currently, Grupeer has 15 loan originators for you to diversify your investments. Grupeer offers personal, car, mortgage, business and development loans.
The most common types of investments within peer-to-peer and peer-to-business lending is the loan deals. This is no different on Grupeer. Grupeer uses a traditional approach where loan originators provide loans from their customers. Their loans are business and mortgage loans.
The loans Grupeer provides is up to 15%. Grupeer has loans that come with a cashback of 1%. In essence, this means that if a loan has a 13% return and cashback it will return 14% (13%+1%).
The credit company has a customer who wishes to borrow money. After a due diligence check, the credit company publishes the loans on Grupeer, where you and I invest in the loans, to get a percentage of the returns. The credit company charges X percent higher from the borrower, and then you get a cut from the profits.
The development projects are just like the title suggests. You can invest in development projects. The projects are real estate establishments. Moreover, the projects are picked by Grupeer themselves to ensure that the development companies track record has good results, hence you will be a happy investor. Grupper conduct and internal due diligence of the project before listing it on the platform.
The development projects come with thorough descriptions of the entire project. Furthermore, you can get an overview of the real estate by artificial pictures, construction pictures, location of buildings, rental prices and much more. Therefore, you can mitigate your risks by reading through the project description.
The development projects generally come with different higher-yielding returns of 13%. The loan terms are also quite varying, just like the loan deals.
Grupeer Stability Fund
Grupeer has created something unique, in comparison to other p2p lending platforms. The Grupeer Stability Fund is a longer-term investment type. The traditional loan deals and the development project are between 0-36 months’ time. The Stability Fund’s purpose is to engage in long term passive rental income for investors. As the name suggests Grupeers focus is to create a stable fund for investors.
The current setup is promising between 4-8% returns with a long-term investment.
The concept is that you literally buy a square meter at a time and collect the rental income from that square meter. This way we can all be an owner of physical real estate without putting down 20.000 EUR to a mortgage.
Currently, the stability fund project has been paused. Grupeer has grounded the project currently to improve their current business even more.
How does Grupeer work?
The platform is quite simple. Individuals and corporations register as investors. Credit companies provide Grupeer with loans that can pass their due diligence. From there, investors invest in the loans provided by the credit companies. You buy a share of a loan together with many other people to fund the full loan, hence the common phrase crowdfunding.
Grupeer offers loans that are provided by professional credit companies, hence they have the expertise to make proper evaluations of the borrowers’ solvency and conclude the agreements. The credit company who issues the loan is responsible for the administration of the loan.
The borrowers have to secure the loans through collateral.
Getting started on Grupeer
Getting started on Grupeer.com is really easy and takes no time to setup. When your account has been set up you have to verify your identification through passport or other approved identification. This is required by law through the European Union (EU). So there is no avoiding this part.
When you are signed up you basically just transfer some money to your account and you are good to go. If you use the auto-invest tool (more on that later), it will automatically invest for you when you receive profit and principle.
The Team and Organization
Grupeer is a company who has a focus on success and want to work hard to achieve their goals. They have three main goals. Trust, passion, and professionalism. The three main goals focus’ on being transparent, being honest in business, to love what they do and convey it in the products which they provide and to do the best yet they possibly can.
Grupeers financial statement was impossible to get a hold of. However, I found a website HERE which shows some of the numbers, faintly. I miss some transparency here. Mintos has its financial statement on their own website. When doing a review of Grupeer I would love to have their financial statement to find the economic health of the company.
The loan list from Grupeer is what I consider traditional. There is nothing unexpected, or more than expected. It is a pleasant and easy to use tool. You can use the loan type, interest rate wanted, loan term and credit company country.
As an extension of the loan list is the auto-investment tool. The tool holds all the adjustments you need to have an automation strategy on the whole platform.
The auto-invest allows you to control which types of loans you want to participate in. That is to say, you can choose any of the five different loan times. Furthermore, you have the ability to control which country the loans are originating from, and also the opt-out from different loan originators.
Like most auto-invest tools, you can control both the interest rate and the loan terms. Moreover, the standard auto-invest strategy limit and per loan maximum is adjustable.
Buyback Guarantee on Grupeer
A buyback guarantee is obligated from Grupeer to the credit companies. In other words, all loan originators (credit companies) on Grupeer has agreed to a buyback guarantee. Hence, if a borrower fails to pay back the loans the credit company has to buy back from the investors. The buyback will be in force if more than 60 days pass with a borrower unable to repay the loan.
Do not get confused with the icons
The Grupeer platform currently has three different types of buyback guarantees.
- Cashback and buyback guarantee
- Collateral and buyback guarantee
- Buyback guarantee
The first icon is to illustrate a loan with cashback and a buyback guarantee. The second icon illustrates that the borrower has provided collateral in the loan and that the credit company provides a buyback guarantee. The last icon is simply a buyback guarantee.
Is Grupeer Safe?
Your money is safe in different aspects. First is the borrower’s solvency. Initially, the credit company/loan originator is an evaluation of the borrowers’ solvency. If the loan originator approves the borrowers’ solvency it proceeds to Grupeer. Before Grupeer post the loan to their platform, their specialists conduct an independent evaluation. This way you are sure that loans of Grupeer are as guaranteed as possible to be repaid.
Grupeer claims that they do not have any delayed loans, hence all loans are being paid on time. Grupeer has also ensured that all loan originators need to have “skin in the game”. Meaning, that the loan originators have to participate in the loan alongside the investors.
Loan Originators on Grupeer
Currently, Grupeer has 15 different loan originators. The different loan originators have different loan areas. Most of the loan originators use a long term shorter than 12 months. Furthermore, you can see which loan originator provides the highest average yielding loans.
Grupeer has no direct statistics on their platform. However, they make a monthly update on the changing numbers. What can be seen in the statistics is that Spain, Germany, and the Netherlands are the most popular investors.
I miss some actual numbers and not just percentages.
Fees and costs
Grupeer is just like most platforms completely free of charge. There is no fees related to the platform, meaning you are free to use all of their investment types, auto-investment tool and so forth without charge.
My first impressions of Grupeer is really positive. I would have no problem throwing money on the platform myself. However, with the recent buy of a laptop (see my monthly income update for further information), I will not be investing in the platform for now.
The platform has a really simple overview of whatever you might need. The auto-invest tool is slick and easy to use. The platform genuinely cares about the investor and participate openly in dialog on social media and to the P2p-conference. At the p2p conference in Riga in 2019, they had multiple interviews. You can read more about that HERE.
Personally I would say, an average return of 13,46 % is satisfactory. Furthermore, if no loans have delayed payments the cash-flow would be optimal as there are no cash-drag. Compared to other platforms Grupeer seems like a lower risk of the spectrum.
When looking at other opinions, TrustPilot is a very good place to start!
The TrustPilot rating is a 4 out of 5 and a TrustPilot value of 7,9. You can read what people have to say on TrustPilot HERE.
What can be derived from the reviews are that some people experience slow deposit and withdrawal times of their money.
There is a small lack of transparency in terms of their financial situation. While Grupeer lacks the financial statement it is not a deal-breaker. I like to know that I have my money in a “healthy” company.
However, Grupeer is a platform that is to introduce some amazing and innovative p2p lending options in the future. Furthermore, they have a slick and beautiful website which is functions quite well. The overall experience of using the platform is fast and problem-free. Doing the Grupeer review I experience the essential functions of Grupeer. Moreover, I will look to invest in Grupeer in the future as their platform holds some simple features.