2023 Review
"STABILITY" AND "DISCIPLINE" APTLY DEFINE THE YEAR 2023 FOR INRENTO. Since its inception, InRento has navigated "STABILITY" AND "DISCIthrough challenging times in the European econPLINE" APTLY DEFINE omies, including a global pandemic, surges in THE YEAR 2023 IN- and inflation, Russia's invasionFOR of Ukraine, RENTO. sudden fluctuations in Eurozone interest rates.
2023
despite thesehas formidable challengSinceRemarkably, its inception, InRento navigated es, InRento has times consistently through challenging in themaintained Europe- an industry-leading track record. an economies, including a global pan-
demic, surges in inflation, Russia's invaIt stands out with a pristine record of zero late
sion of Ukraine, and sudden fluctuations
projects and an average investor return exceed-
in Eurozone interest rates. Remarkably,
ing 11% per annum, stemming from investment
despite these formidable challenges,
opportunities spanning Lithuania, Poland, and
InRento has consistently maintained an Spain.
industry-leading track record. It stands out with a pristine record of zero 2022 Europe FinTech awards late projects and an average investor
#1 Investment return exceeding 11% per annum,tech stemof the year
ming from investment opportunities spanning Lithuania, Poland, and Spain.
11.61%
Average investor’s return p.a.
0
Late projects
77
Number of new projects
EUR 1,230,271 Total earnings of investors
EUR 12,281,401 Amount funded in 2023
2.39X
Annual growth in amount funded (YoY)
INRENTO: A CLOSER LOOK InRento stands as Europe's premier
The opportunity for investors to partake
specialized
crowdfunding
in a timeshare arrangement, specifically
platform, empowering investors to par-
tailored for selected tourism properties
ticipate in top-tier buy-to-let ventures
and larger investments. This innovative
with a minimum investment of just EUR
approach not only offers financial gains
500. When investing on InRento, inves-
but also extends the privilege of experi-
tors earn fixed monthly interest and
encing the very tourism rentals in which
earn capital gains when projects are
investors have placed their trust.
buy-to-let
being realized. InRento’s activities are regulated and licensed under ECSP license. Since InRento’s inception in 2020, 2,533 investors from around the globe have entrusted EUR 19,775,909 across 107 investment opportunities in Lithuania, Poland, and Spain, while recording 0 late or defaulted projects. Distinguishing itself from conventional investment platforms, InRento presents a unique proposition:
UNDERPROMISING, OVERPERFORMING Throughout the entirety of 2023, each
Variable capital gains empower inves-
month witnessed the realization of pro-
tors to partake in the appreciation of
jects, whether partially or in full. During
asset values, with profits generated
this time, a remarkable total of EUR
upon project realization being shared
2,629,988 in principal repayments were
between project owners and investors.
repaid to our valued investors from projects in Lithuania and Spain.
Interest indexation to inflation enhances the allure of medium and long-term
A noteworthy feature of realized pro-
investments, as the interest disbursed
jects is that a substantial number of
to investors undergoes annual indexing
them have yielded returns exceeding
to inflation. Consequently, the fixed
initial expectations, thanks to two
monthly interest annual return grows
distinct advantages of investing with
each year, serving as an effective hedge
InRento: variable capital gains and
against inflation.
interest indexation to inflation.
FULLY REALIZED PROJECTS
REALIZED PROJECTS AVERAGE RETURN P.A.
$ 2,622,545 EUR
14.04%
PAVING THE WAY FOR NEW POSSIBILITIES On 10th of November, 2023, the Bank of
In consequence, the newly acquired
Lithuania issued to InRento a European
license brings forth transformative
Crowdfunding (ECSP) license.
changes in the calculation of credit assessment scores, investor transac-
This newly acquired license marks the
tion suitability, and pricing structures,
gateway to expansive growth and scal-
including interest rates. Another signifi-
ability within the European Union. It
cant amendment lies in the provision
grants InRento the ability to extend its
allowing investors to cancel an invest-
reach across the entire European Union
ment within four days of the transac-
market, actively attracting investors
tion, although this feature had already
from every corner of the EU.
been seamlessly integrated into the InRento platform long before the issuance of the ECSP license.
10th of November, 2023, the Bank of Lithuania issued to InRento a European Crowdfunding (ECSP) license.
INRENTO'S GROWTH BEYOND BORDERS: POLAND March 2023 marked a pivotal moment
This structure is slated for transforma-
in InRento's journey, as it witnessed the
tion into a residential building featuring
financing of our first project in Poland.
apartments ranging from 25 to 40
The inaugural project involved the con-
square meters, available for rent. Nota-
version of a substantial 1977-squa-
bly, the loan amount for this project did
re-meter building into 56 distinct resi-
not surpass 50% of the loan-to-value
dential rental properties. This project
(LTV) ratio, amounting to EUR 900,000,
garnered significant interest within the
while the property's current value
investment community due to its
already exceeds EUR 1.8 million.
potential for higher returns and a relatively low level of risk. The developer's stellar reputation and proven track record in the market further bolstered investor confidence. Later in the year, InRento facilitated the financing of another remarkable project - the financing of acquisition of a 2,022-square-meter German-style building, formerly a bank.
In aggregate, the projects in Poland in
"In the wake of the onset of the Ukrainian
2023 constituted nearly 11% of the total
conflict, Lithuania has welcomed approxi-
funded amount, and we anticipate a
mately 100,000 official immigrants, while
substantial increase in this share
Poland has seen approximately a million.
throughout 2024. Our ongoing efforts
Remarkably, the unemployment rate has
involve the continuous sourcing of new
remained low in both countries, a testa-
investment opportunities, with plans to
ment to the abundance of job opportunities
introduce additional offerings as early
and the buoyancy of the economies. The
as Q1. Furthermore, in H1, we aim to
surging influx of migrants has also exerted
present an investment opportunity in
a substantial impact on the rental market,
Poland that includes variable capital
driving up demand and subsequently esca-
gains.
lating rental prices. With Poland's migrant population outnumbering Lithuania's by a
The Polish market exhibits a compara-
factor of ten, the demand for rental housing
ble average rental yield to Lithuania,
has surged considerably, making property
with even its major cities consistently
rentals more competitive in both smaller
generating an average annual rental
and larger cities," stated CEO of InRento
yield ranging from 5% to 7%. Over
Gustas Germanavičius.
recent years, there has been a steady and escalating demand for rental housing in Poland, rendering it an enticing destination for investment when juxta-
Consequently, a favorable environment
posed with Lithuania. A pivotal distinc-
for the development of buy-to-let pro-
tion between the two lies in the size of
jects based on the conversion principle
the countries, which inevitably gives
is emerging. This approach entails the
rise to divergent investment opportuni-
transformation of older buildings or
ties.
former administrative structures into contemporary residential housing, presenting an appealing opportunity for investment.
A YEAR OF PROGRESS: INRENTO'S SHARE CAPITAL SURPASSES EUR 694,673 IN 2023 InRento, a financial technology company
This prudent approach is mirrored in the
subject to the regulatory oversight of the
company's impressive results, setting it
Bank of Lithuania, has consistently adhered
apart from its Lithuanian counterparts. Nota-
to stringent capital adequacy requirements.
bly, InRento boasts an impeccable track
These requirements are closely monitored by
record, with no late projects and consistently
the Bank of Lithuania through regular report-
delivers the highest average annual return,
ing. Since 2020, InRento has successfully
which now exceeds an impressive 11%.
secured venture capital funding from three
Detailed statistics can be found here. Addihttps://inrento.com/statistics/
institutional investors, strategically allocat-
tionally, during this period, InRento strategi-
ing these resources to accelerate its techno-
cally acquired two foreign platforms to
logical product development and internation-
further expedite its international expansion.
al expansion efforts. In a clear demonstration of its commitment In simple terms, the investments have facili-
to growth and success, InRento has chosen
tated InRento's expansion into foreign mar-
to
kets, particularly in Spain and Poland. Distin-
694,673.74. This decision has been formally
guishing itself from many crowdfunding
recorded, and InRento's share capital now
firms, InRento, even during periods of eco-
stands at EUR 694,673.74. It's important to
nomic uncertainty such as the Covid-19 pan-
note thathttps://inrento.com/statistics/ InRento serves as an intermediary
demic and the onset of the conflict in
and an expert in facilitating financing and
Ukraine, maintained the discretion to support
investments. Investment agreements are
only the most reputable and credible
established directly between investors and
projects. This prudent approach is mirrored
project owners, providing the flexibility for
in the company's impressive results, setting
the potential transition of loan administration
it apart from its Lithuanian counterparts.
to any other qualified administrator or finan-
bolster
its
cial institution.
share
capital
to
EUR
CRAFTING SOLUTIONS TAILORED TO HIGH NET-WORTH AND INSTITUTIONAL INVESTORS
With growing volumes, InRento
This innovative feature allows
has been attracting attention
investors to divide the sale of
from institutional investors and
Secondary Market assets into
high net worth individuals inter-
smaller investment units, start-
ested in investing in the invest-
ing from just EUR 50,000. Inves-
ment opportunities offered on
tors who have committed more
the InRento platform.
than EUR 50,000 in a single project stage can simply contact
In response to this development,
InRento with their intention to
InRento is pleased to introduce
sell, and their investment will be
a new feature called the "Grand
listed on the projects page
Sale" on its platform.
under the subsection 'funding at outstanding principal value.
For larger investors, this feature provides increased liquidity, enabling them to sell investments at their convenience. For all other investors, it offers three additional benefits: Accrued Capital Gains: Since the
More Significant & High-Quality
"Grand Sale" operates as a Secondary Market
Investment Opportunities: InRento's
sale, investors gain claim rights to accrued
enhanced liquidity offering for institutional
capital gains. For instance, if a larger investor
investors and high net worth individuals
has invested EUR 100,000 in a single project
allows the platform to extend larger loans to
with fixed capital gains of 1.5% annually, after
project owners. Consequently, this results in
one year, EUR 1,500 in fixed capital gains has
more substantial and higher-quality invest-
technically accrued. When using the "Grand
ment opportunities for all investors on the
Sale" feature, the investor can transfer the
platform.
claim rights of EUR 1,500 to multiple invesinvestor
InRento is excited to introduce the "Grand
invests EUR 1,000, they gain the right to
Sale" feature, providing enhanced liquidity
potential EUR 15 in accrued fixed annual capi-
and opening up new avenues for investors to
tal gains. This enables investors to potentially
optimize their returns while exploring a wider
earn a higher return than their initial invest-
array of investment possibilities.
tors. Therefore,
when
another
ment due to the passage of time.
Ability to Invest in Previous Projects: As the InRento investor community continues to grow, new investors will have the opportunity to invest in projects funded in the past. This is particularly valuable since the number of Secondary Market offers typically remains limited.
MAKE MEMORIES WITH TIMESHARE INVESTMENTS InRento's primary area of focus includes
Nestled on the left bank of the King Mindau-
financing short-term rentals and hotels, offer-
gas Bridge, opposite Gediminas Castle and
ing timeshare projects that create mutually
Cathedral Square, this strategic location
beneficial opportunities for both investors
ensures easy access to the city center, public
and project owners. Investors witness the
transportation, and the enchanting Old Town,
tangible impact of their investments, while
all within reach of the lush green parks.
project owners gain additional exposure and reviews. InRento presents an online invest-
The hotel will offer 23 modern studio apart-
ment platform that not only provides a finan-
ments spread across both floors, each boast-
cial return but also offers the emotional satis-
ing a private entrance and private bathroom.
faction of staying in the properties in which
Some fortunate guests will have the privilege
one has invested.
of enjoying stained-glass windows with captivating views of the Neris River. Several InRen-
In the year 2023, InRento continued to offer
to investors have secured timeshare rights,
investment opportunities with timeshare
entitling them to complimentary nights due to
options. These opportunities spanned from
their significant investments. In 2023, InRento
charming tourist destinations in Lithuania to
facilitated a total investment of EUR 973,000
larger guest houses in the heart of Vilnius' old
across all funding stages for the Floatel, Vilni-
town, and even the unique Floatel, a floating
us project.
hotel in the heart of Vilnius.
Anticipating its grand opening in 2024, the first-of-its-kind hotel in Lithuania is set to welcome guests in the heart of Vilnius. Nestled on the left bank of the King Mindaugas Bridge, opposite
FEW WORDS FROM INRENTO'S CEO AND FOUNDER, GUSTAS GERMANAVICIUS “When we launched InRento back in 2020, we had
Today, as we stand at the beginning of 2024, I'm
a singular goal in mind—to provide people with
immensely proud to share that our outstanding
lower and medium-risk options for real estate
loans portfolio is approaching the EUR 20 million
crowdfunding investments. It was an ambitious
mark. What's more, it boasts a flawless track
objective, especially considering that just four
record, with not a single late or defaulted
years ago, online investments were largely asso-
project—a record that places us among the
ciated with a high-risk, high-reward mindset.
top-performing investment platforms in the entire European Union.
I can still vividly recall those early days, when we faced the challenge of fundraising for our first
With this in mind, as we step into 2024, I extend
investment opportunities, all of which were adver-
my sincere wishes to each and every one of you,
tised with a rather modest 6-7% annual return.
as well as to my committed team—may we main-
One project that comes to mind is 'Modern Office,
tain our unwavering focus and discipline in not
Vilnius,' which advertised investors a 6.06%
only our life choices but also in our investment
annual return, paid out on a monthly basis, com-
decisions. I want to express my heartfelt gratitude
plemented by variable capital gains. The concept
for choosing InRento over the years and hope that
of variable capital gains was groundbreaking at
you'll continue to choose InRento for your invest-
the time, but it posed a challenge for investors to
ments for many years to come.”
fully grasp. We encountered skepticism and resistance.
However, a year later, that very project materialized, and when combined with the capital gains, our investors enjoyed an astounding 21.5% annualized return. It was a pivotal moment for us, teaching us an invaluable lesson—prioritizing sustainable investments no matter public opinion and adopting a cash-flow-based risk approach can act as a formidable hedge against the ebbs and flows of the economy.