Grupeer review : high returns with little effort

Grupeer review : high returns with little effort

Grupeer’s overview

Grupeer provides business and real-estate loans. These loans yield between 10% and 13% annually, for a duration of one year or less. They come with a buyback guarantee, a rare occurrence for these kinds of loans !

My opinion on Grupeer

While Grupeer‘s interest rates have decreased in late 2018, the performance of the platform is still very good – especially when taking advantage of the cashback campaigns -. For investors who want to start investing in loans other than individual loans, it’s an excellent choice thanks to the ease of use and great buyback guarantee.

Detailed ratings

Performance

If I regret the large volume of loans yielding 15% that were previously available, it’s still possible to get a performance above 13%.

Loans liquidity

With a greatly increased number of originators, the cash drags of late 2018 definitively seem to be a thing of the past.

Reporting

The reporting is limited to bare essentials : account statement, investments list.

Buyback guarantee

Grupeer‘s buyback guarantee covers both principal and interests; the delay is 60 days, which is a bit lengthy.

Website ergonomics

The website is a bit dated and evolves too slowly; however, at the same time, it’s overall rather user-friendly.

Grupeer’s pros & cons

Pros

  • Large loans volume
  • Frequent cash-back campaigns allow to bump returns quickly

Cons

  • No secondary market
  • Support needs to be improved

Loans characteristics

Loans duration

Short-term : one month or less

Medium-term : one month to one year

Long-term : more than one year

Loans kinds

Business

Real-estate

Minimal investment

€ 10

Buyback guarantee

Buyback guarantee available

Currencies

Euro

Overview of Grupeer’s loans

Grupeer provides only secured loans in Euro. Initially the loans supply was very scarce, and my original review showed a screenshot of the five loans which were available at that point !

Fortunately, things have changed for the best and there are now many loans to invest in. Many of them offer annual rates of 13% for a duration around one year; the lowest interest rate found on the platform is 10%, and they can reach 14%.

Grupeer's loans
Grupeer's loans

Both business loans and development projects are available; these two kinds of loans offer similar expected returns and durations.

Initially, most financed projects were located in the Baltic countries; the largest project financed through the platform was Promenada, a real-estate project.

However, Grupeer has since started listing projects in Norway. While their interest rate was lower than usual, at only 13% (compared to 15% for the previous projects), investors from Western Europe may enjoy the focus on locations closer to them, which they may perceive as safer.

Tanem, a project funded through Grupeer
Tanem, a project funded through Grupeer

Another recent change is the availability of new loans structures : amortizing loans and balloon loans. Amortizing loans are less risky, as the principal is reimbursed gradually, instead of being repaid totally at maturity date . On the other hand, balloon loans reimburse both principal and interests at the loan maturity.

Grupeer regularly runs cash-back campaigns, meaning they will immediately credit your account with a certain percent of your new investments in specified loans. They usually give back 1% of the amount invested in selected loans – although the most recent cashback campaign was 2% -. The loans featuring this offer are highlighted by a blue € icon.

Loans volume

In late October 2018, Grupeer suffered a great cash drag, as all loans were sold out for several weeks. New loans were added in November, albeit with lower interest rates : most of them yielded 12%. In December, the situation was basically normal again, with 13% loans being readily available.

With more and more originators, liquidity hasn’t been a concern in 2019; unfortunately, at the same time as the loans volume increased, the average interest rates on the platform decreased, and the current interests rates are definitively lower than in 2018.

The financed amount is rather small for most business loans, generally below € 50,000; on the other hand, development projects require much larger amounts. For instance, the recent project named Tanem required € 710,000 !

Issuers

There are many originators available. This allows investors to diversify their loans portfolio by spreading their investments among several originators.

Grupeer's loans originators
Grupeer's loans originators

Buyback guarantee

Grupeer was among the first platforms to offer a buyback guarantee for development projects and business loans; this guarantee indeed used to be available only for personal loans.

The delay for this guarantee used to depend on the originator; it now seems to be uniform, and will trigger after a 60 days delay. The investor will be compensated for the outstanding principal and accrued interest that didn’t get reimbursed.

Grupeer's buyback guarantee
Grupeer's buyback guarantee

Platform’s features

Early exit

Early exit NOT AVAILABLE

Investing methods

Auto-invest

Manual investing

Secondary market

There’s currently no secondary market. It’s expected to be implemented during the 1st quarter of 2020.

Manual investing

It’s extremely easy to invest manually via Grupeer; that’s actually how I managed my portfolio there for a long time, before auto-invest was available.

From the loans list, just click “Invest”, select the amount and validate. The loan will be added to your basket at the top of the screen. Once you’ve selected all loans to invest in, click on the basket icon and confirm your investments.

Project information for one of Grupeer's loans
Project information for one of Grupeer's loans

Auto-invest

In May 2018, Grupeer added an auto-investing feature to their website. The initial version was rather basic, allowing few filters. However, it’s been revamped in November 2018, and now offers many more criteria. It’s also possible to use several auto-invest at the same time.

Grupeer's auto-invest screen

I mostly regret the lack of an auto-diversification feature, like the one Mintos offers.

Website’s ease of use

Languages

French, English, Russian, German, Spanish

Funding methods

Grupeer’s registration process

Creating an account with Grupeer is extremely quick and easy; the amount of required information is very limited. However, due to the KYC (Know Your Customer) regulations, you’ll be required to indicate the origin of funds and upload a copy of some identification.

After confirming your e-mail, your account is immediately available.

Account funding and funds withdrawal

Website’s design and ergonomics

On the minus side, the design of the website is rather basic and looks a bit dated; on the other hand, it’s easy to use thanks to the limited set of features. It’s also very readable and the navigation is straightforward; even on a mobile phone, it’s a pleasure to use it !

One missing feature is the ability to sort the available loans by clicking on a column (for example, to sort them by decreasing interest rate). It’s currently possible to toy with filters in order to get the desired information, but it’s not very convenient.

Available languages & translations quality

The website is available into many languages : English, Russian, German, French and Spanish; however, the translation’s quality varies greatly from one language to another. While the English version is spotless, the French one is sometimes weird; several parts didn’t even get translated.

Reporting

The statistics are very limited. I appreciate the opportunity to export the account statement as an Excel file. However, what I would love to see is a breakdown of my investments by originator. This would allow investors to check if their portfolio is diversified enough. Also, being able to visualize the planned cash-flow would be great.

Several reporting improvements are planned in late 2019 and early 2020; as usually when it comes to Grupeer’s website, changes seem to take forever.

Documentation

The How it works page introducing the platform is well designed and informative; in addition, the FAQ is rather complete – although it could be improved by dividing it into small sections -.

For some reasons, the links to the various documentation pages disappear once you’re logged in

Support

It’s possible to get in touch with Grupeer via phone, e-mail or live chat; the latter option was added in July 2019.

I contacted the support several times by e-mail after suffering technical problems, one of which was rather serious – I was unable to invest either manually or automatically, and my account’s balance was totally wrong -. While my troubles always got resolved, I was unfortunately only mildly satisfied with the delays in answering, as well as by the answer itself. I thus consider the support to be one of Grupeer’s weak points.

Communication from the platform​

Investors will receive notifications from Grupeer when payments are made. Initially this aspect was poorly handled, the platform sent one e-mail for each payment ! Now all data is grouped together in a neat e-mail, so it’s much easier to understand what’s happening with your account.

Grupeer's payments notification
Grupeer's payments notification

They will also periodically send out balance reports; in addition, investors will be notified of important projects or new originators.

Actual performance of my Grupeer portfolio

14,80%

At the end of July 2019, the XIRR for my Grupeer portfolio was 14,80%.

In spite of the decreased rates, I manage to maintain a good performance thanks to the cashback campaigns.

Don't hesitate to read my most recent crowdlending portfolio review for detailed platforms performance comparison as well as historical performance.

Grupeer's main competitors

For a detailed comparison of the different real-estate and business crowdlending platforms, check out this article.

Grupeer's facts & figures

Location

Riga, Latvia

Founded in

2016

Number of investors

13,028

Loans amount financed

€ 50,868,819

As of August 2019

Who can invest at Grupeer

Persons that have reached the age of 18 years and are residents of the countries of the European Economic Area or Switzerland and have an account with a licensed credit institution of one of these countries.

The persons that have a bank account in another country need to receive an additional confirmation from the Platform that we are ready to accept a payment from the jurisdiction they offer.

Grupeer FAQ

Disclosure

Please note that this review may contain affiliate links. It means that I will earn a commission if you decide to invest after clicking through the link – at no additional cost to you, of course -. Please understand that I have experienced all of these companies, and I recommend them because they are helpful and useful, not because of the commissions I make if you decide to invest through my links.

4 thoughts on “Grupeer review : high returns with little effort”

  1. Hello,

    Do you have any updates after a while investing in it? Grupeer provides great return with buy-back (it is almost the same yield as some other platforms provides non-collateral loans). It is interesting if you see any risks in investing? To my opinion, there’s not much experience with loan originators bankruptcy and whether investors receive all invested amount. We are not able to check who are the final loan receivers so we need to trust in loan originators financial condition. What is more, have you seen any forums or/and investors chats where they shares its’ experience in investing in grupeer? Except this, p2p hero and welltrado articles , I have not seen any more discussions among usual investors. Buy-back is a very good stuff, however investors must not take it as 100 % guarantee (please check Mintos – Eurocent case). Good luck ! Will wait more post about grupeer platform which is comparable very profitable in EU market.

    • Hello,

      Grupeer is one of my favorite P2P platforms. The returns are very consistent, there’s no shortage of loans and the regular cash-back offers make it even more attractive. After a bit less than one year, my XIRR is consistently above 14%. The availability of several originators also helps mitigate the risk; diversification among several issuers is a must as buyback is indeed not an absolute guarantee. Note that I mostly focus on their loans yielding 14%, as I don’t totally trust the Russian originator. Which brings me to the next topic…

      I totally agree with your comment regarding the need to check the originator’s finance; however they’re seldom available, so we must rely on the platform to select trustworthy originators. Mintos implemented more severe screening after the Eurocent troubles, and other P2P platforms also did so. I honestly don’t believe that investors will get all their funds back in case an originator goes down. However it’s just part of the risk of investing; most P2P platforms have returns above 12% in a much more consistent way than, say, the stock market, so it’s normal to have some risk associated !

      Finally, back to Grupeer again, I also read very few reviews of this platform elsewhere, and I was curious about it. One P2P investor I contacted about it was concerned about the small amounts available; he prefers to invest in larger companies, which are supposedly more reliable.

      • Thanks Jerome for your insights! One more thing, do you trust in the platform itself? I mean just very few investors know about it and no active communication can be found – it makes a feeling that it is very new and risky. Did you have a chance to check their management reputation (maybe had a direct contact with them)?
        I invested approx. in 20 loans and will observe the situation before investing more.

        • I know that several other bloggers in the P2P lending area partially evaluate a platform’s trustworthiness by communicating with their management. However, I tend to dismiss such criteria. Indeed, nowadays it’s very easy to build websites that look extremely convincing while being actually very shady. Look at how many people invested in bogus ICOs after reading a well-crafted whitepaper ! While I agree that it’s a slightly different situation, this example incites me to disregard appearances and focus only on the returns that my small initial investment yields.

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