Robocash – an update after more then 4 months

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In February 2017 the www.robo.cash platform was launched. I joined robocash when they started and can consider myself in the midst of the first five investors. A lot has happened during the last months. Robocash was able to announce that more then 1  million Euro of investors money has been raised so far and more then 2 millions of loans were financed. This means that a lot of investors reinvest their capital and interest. In the meantime robocash counts more then 500 investors, what gives an average investment per investor from approximately 2’000 Euros.  Further the platform joined the Lavtivan Alternative Financial Services Association. Mintos, Twino, Viventor and many more are also members. The goal of the association is mainly to further develop the p2p lending industry, of course there are other goals as well.


10’000 Euro Limit

The above average investment might seem somewhat low, but we should put this amount into relation. Firstly, the platform is still young and operative for not much more then 4 months, so I guess some investors just went in with lower amounts for testing purposes, which is perfectly fine. Secondly the platform itself imposed a limit of EUR 10k per Investor. This means you cannot deposit more then 10k, but can invest more then 10k, as you can reinvest your interest. Interest is excluded from this rule, but you can’t deposit one Euro more then 10k, the 1 Euro would be returned. Example: You deposit 10k and after one month you got 120 Euro interest, now you can invest 10’120.- but not pay in any more. The platform justifies this as they still want to gain experience before lifting the limit. I like this decision as I guess other platforms would have just collected what would have been available without knowing if they really need so much capital. This might result in investors funds sitting on the account without beeing invested. I guess the wanted to prevent such a situation, which is favorable for investors. These are just assumptions in the end, but I believe they are true. What I definetly can say is that robocash considered lifting the limitation in May and June, but to date it still persists at 10k.

Loyaltyscheme for the first 1k investors

During launch robocash had announced that the first 1k investors will be added to a loyalty scheme. Terms have yet to be defined but these investors should get more then 14 percent interest on their investments. No worries, there is still time to be one of the first thousand, as per yesterday (28th June) evening 19.00 o’clock there were 514 investors registered. So you can still be part of the loyalty scheme register here directly (click on start investing).

Bugs are good and they want to get better

As anticipated I spotted some bugs here and there and sent them to the support. Sometimes I got a little bonus interest on some loans for helping to spot the bugs, so from that perspective bugs were good for me 😉 Further this showed me that the platform wanted to learn and get better. All my suggestions were considered and if useful implemented. You can also see that the cockpit was revised and that there are new functionalities added.

Fazit

I have a positive attitude towards robocash. My funds alwazs were invested completely, without my intervention (what is anyway not possible). I can’t report that from all other platforms……. Let’s see what the future brings, I am excited.

5 Replies to “Robocash – an update after more then 4 months”

  1. I tried to invest with this platform, despite I am not able to trust Russians but first thing what surprised me is inconsistency what they say and what is possible. They say “Robocash is the investment platform … comprising lenders from Spain, Russia and Kazakhstan”. BUT I am not able to create portfolio with Russia. Only Spain and Kazakhstan.
    Spain is country with high default portfolio … so I want to really see what will happend with our money in 1 or 2 years.

    1. This inconsistency arises from the fact that the platform is just some months old and not all loan originators/countries have been added. They started with Kazakhstan and then later Spain was added. Russia is to follow. The company behind robocash does business in this three countries, so it is natural they would write of the three countries on their platform. As for the high default rate: I guess this would be true for Kazakhstan as well. In the payday loan market there are usually high defaults, this lies in the nature of the business. As long enough loans pay back, or enough can be collected it is a profitable business. If there are too many defaults without or low recovery, then the loan originator might get into trouble and when this happens, the buyback guarantee could be worthless. But this is nothing new, I posted that several times on this blog and one should understand that risk before investing.

      Maybe an investment in Bulkestate or Estateguru is more suitable for you as you have a property as security for the loan?

  2. Thank you p2phero for comments, but I have no problem with risk in the business. I do understand it. I just have problem with different words in advertising in comparison with reality. It’s too common with start-ups lately so I am starting to be allergic on this kind of marketing. That’s all.

    I have tried Estateguru as well, but they have not too much suitable opportunities for me. They have (at least lately) many opportunities with repayment In full at the end of the Loan Period but I like to spin the money.

    But I like you blog very very much so please don’t be discourage with my skepticism occasionally. 🙂

    1. Actually it is quite encouraging to see people read what I write and express their own opinions. I really enjoy discussing so I am open to contrarian views to mine. So thank you 😉 and keep your skepticism up.

      Btw, housers offers (since yestwrerday) a 12 month project with 10% yield and monthly interest payments. Maybe that’s worth looking at.

      Regards

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