InRento 2023 Review

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.