On October 23rd I did another interview with Martins Sulte, CEO at Mintos. Topics covered: affiliated loan originators, complicated recovery process, Sebo deal, real return of Mintos, quality of loan originators and their reporting.
Content of video:
00:00 Mintos & it's affiliated Loan Originators: what is difference between "Related parties according to IAS24" and "some equity investors overlap"?
04:40 How much % of Mintos and Hipocredit does Martins Sulte and Martins Valters own?
05:00 Which Loan Originators fall under "Related parties according to IAS24"?
06:25 Why are related Loan Originators paying only 3.6% of Mintos total income?
09:15 Loan Receivables - good idea in theory, but does not work in practice? Eurocent, Rapido Finance
10:30 Rapido Finance - putting obstacles
12:46 If Loan Originators are acting in bad faith, there is not much Mintos can do?
14:34 Why is it so hard to take over portfolios from failed Loan Originators?
16:30 Can any Loan Originator create many obstacles that ends with 0% recovery later?
18:56 Capital Service and their ridiculous offer to Mintos investors
20:20 Sebo was sold to Mogo for 2.9m EUR. How much was paid to Mintos investors?
26:00 Interest earned - is 120 million a real number, or part of it is pending/in recovery?
26:50 What are the real returns for Mintos investors?
33:40 Quality of Mintos Loan Originators, Invest & Access
39:40 Diversification in P2P - does it work? Or do we need certain quality?
42:50 Quality of companies and quality of reporting
45:20 Info that Mintos gets vs what investors get to see
47:00 Will Mintos standards change in regards who to accept as a loan originator?
49:00 Estimate overall - how will the "money at risk" change in the next year?
53:00 How is Mintos doing? How much money was provided of promised 5 million EUR?
55:20 Mintos will do more fundraising from outside investors
57:34 Can we expect new Loan Originators?
1:00:00 Mintos investor expectations - 10% or more?
1:01:25 Where will Mintos expand - in Europe or in LATAM, Asia, Africa?
More posts about Mintos:
Mintos investors got only ~10% from Sebo deal, so roughly 290k EUR
~40% of Mintos 2019 revenue was from affiliated loan originators
If a loan originator decides to act in bad faith, that can result in a long and expensive recovery process. In worst cases like Eurocent and Rapido that can mean 0% recovery rate.
Many Mintos loan originators are like black boxes for investors with no reports or low quality/old reports, and even Mintos CEO think they should be “punished” by not investing in them with the same interest rates, and instead requiring higher interest for additional risk.
Current angel investors have not provided all 5 million funding as previously promised, but there is no urgency, Mintos has ~2 million EUR in cash. Plan is to raise next funding from outside investors.
We can expect new loan originators, access to ETFs, IBAN accounts
P.S. Join “High-risk investments“ Telegram group for an informal discussion.