From Estonia to Global Markets: Income’s Investor-First Approach and Crowdfunding the Future of Secure Lending

• Estonian investor loan marketplace Income is back on SeedBlink
• The platform prioritizes investor security, offering proprietary risk mitigation features
• The raised funds are meant to fuel the platform’s international expansion and accelerate the launch of Income’s secondary market

This May, Income—the Estonian marketplace connecting investors with Loan Originators—returned to the famous Romanian-born crowd investment platform SeedBlink for another round of investment. This time, EUR 540K were pre-committed by the startup’s long-time supporter Dr Karlheinz Hauptmann, EUR 250K worth of shares are offered on SeedBlink, and the campaign runs until July 7th.

Income’s Vision and Focus

Income’s founder Kimmo Rytkönen comes from the fintech, lending, and digital banking background. Previously, he co-founded Amar Bank, Indonesia’s first neobank, which went IPO in 2020. That same year, Mr Rytkönen started Income, stating unfair treatment of investors on existing platforms, in view of the problems caused by the pandemic, as the main particular trigger.

While the name fits perfectly, it may seem somewhat generic and ‘ungooglable’—according to the founder, this is because naming and branding were not his priorities as he put all his effort into getting the platform up and running. The platform is often referred to as GetIncome or Income Marketplace.

Essentially, Income operates an online marketplace that connects retail investors with various Loan Originators (LOs), allowing them to invest in different types of loans. The platform focuses on providing investors with passive income opportunities while incorporating specific security features to mitigate risks. Income’s technology-driven approach democratizes access to private debt investments for a broader range of individuals.

‘What sets income apart is our focus on investor security and thus the agreements and structures we do with Loan Originators,’ Mr Rytkönen notes.

Risk Framework Protecting Investor Capital

To safeguard investments in private debt, the platform utilizes a risk framework. It  includes three key mechanisms: Buyback Obligations, Cashflow Buffers, and Junior Shares.

• The Buyback Obligation is straightforward: e.g. if a loan becomes 60 days overdue, the Loan Originator is required to repurchase it from investors. This ensures that investors can get their capital back quickly, as LOs are better equipped to manage delinquent loans and maintain investor cash flow.
• Cashflow Buffers are determined by assessing the cash a Loan Originator’s portfolio generates. This assessment helps calculate the Junior Share, which is the portion of each loan that the LO retains. For instance, if a loan has a 30% Junior Share, investors only put in EUR 700 of a EUR 1K loan. Should collection become necessary, the full EUR 1K loan is available for collection, but only EUR 700 is needed to satisfy investors. The Loan Originator bears the initial risk for that 30%. On a portfolio level, if a EUR 1M portfolio generates EUR 1.1M in cash, and the Junior Share is 30%, investors would have a EUR 700K investment backed by a EUR 400K cashflow buffer, providing an extra layer of security.

Ensuring Loan Originator Reliability

Income’s CEO Lavrenti Tšudakov underscores that the reliability and stability of LOs are critical to ensuring the platform’s strong performance and investor trust. The evaluation of LOs starts with the widened KYC/AML procedures and continues with Due Diligence, which includes: 

• Financial performance analysis: Evaluating balance sheet health, cash flow strength, and profitability.
• Loan book performance: Assessing lending history, loan servicing infrastructure, and local regulatory compliance.  
• Risk-bearing capacity: Ensuring LOs are capable of holding a meaningful Junior Share of each loan (i.e., they take first loss if the borrower defaults).
• Online monitoring: All data from the LOs’ loan management systems gets reflected in the Income backend, and the real state of all the loans is always visible.
• Proprietary General Ledger System: The platform’s custom-built general ledger acts as the single source of truth for all transactions and loan records. It enables seamless reconciliation of investor balances, cash flows, and LO activity.

Regulatory Nuance

Interestingly, Income is currently not a regulated entity in Estonia, as the assignment of claims—its core operating model—is not classified as a regulated financial activity under the Estonian law.

‘While formal regulation does not apply, we take legal and compliance obligations seriously. We actively monitor the legislative landscape in Estonia and other relevant jurisdictions to anticipate and adapt to any future regulatory developments. Before onboarding any Loan Originator in a new market, we conduct a thorough legal and compliance review to ensure that our operating model is both lawful and enforceable in that market. This proactive approach allows us to maintain a high standard of transparency and operational integrity, even in the absence of formal regulation,’ Mr Tšudakov assures.

A Return to Crowdfunding Success

Back in 2021, Income already raised EUR 700K of crowd investment (with Tolaram Group pre-committing). It turned out to be a positive experience, which predetermined Income’s decision to raise its new round through crowdfunding once more. SeedBlink allows the crowdfunded startups to reach a broad base of engaged investors who contribute capital.

‘We wanted to offer our existing equity investors the opportunity to rejoin us under favorable terms. By providing an attractive valuation and using a trusted platform, we’re combining accessibility with alignment, welcoming both new supporters and those who have believed in us from the beginning,’ Mr Tšudakov tells ITKeyMedia.

‘SeedBlink and Income both operate within the investment space, and our approaches complement each other. SeedBlink is a platform and infrastructure bringing together startups and investors with the capital and tools to accelerate growth in the European private market across primary and secondary investments. Income, on the other hand, focuses on fixed-income opportunities via alternative lending. We share values of transparency, empowering investors and companies, and making professional-grade investment tools available to more people. Income’s return to SeedBlink speaks to the trust and long-term partnership we’re building as we help shape Europe’s alternative investment landscape,’ SeedBlink’s co-founder and CEO Andrei Dudoiu comments.

New Horizons and the Future of Alternative Finance

With the new funding, Income sets sails for a significant expansion, specifically toward high-growth markets like Mexico and the Philippines. The marketplace also aims to double its vetted non-bank lenders and launch a secondary market to improve investor liquidity. Additional investment is planned in technology, team growth, and refining user experience for both lenders and investors.

Income views Mexico and the Philippines as emerging markets with strong demand for alternative lending, making them attractive to both LOs and the investors on the platform. The Income team is convinced of these regions’ solid yield opportunities and alignment with the marketplace’s model of secured, transparent investing.

‘Our decision was also influenced by indications from existing partners who expressed interest in expanding their cooperation with Income in these geographies. The first steps have already been taken: We’ve completed initial legal compliance checks, and the assignment of claims model we use is fully adoptable and operational within the legal frameworks of both countries. This gives us the confidence to move forward with scaling in these regions in a structured, compliant manner,’ Mr Tšudakov adds.

Providing a transparent and secure marketplace for retail investors to earn passive income, Income democratizes access to private debt investments. A robust risk framework and meticulous vetting of Loan Originators allows for actively shaping the landscape of alternative investments in Europe and offering a more accessible and protected environment. With ambitious plans for expansion into high-growth markets like Mexico and the Philippines, Income is poised to further enhance liquidity and diversify investment opportunities globally, advancing the evolution of alternative finance.