With a generally healthy FinTech ecosystem, Italy is particularly prominent in the areas of digital lending and PropTech. Where the two converge, a thriving community of startups has emerged in the country, developing crowdfunding platforms for real estate financing.
In this article, PYMNTS takes a look at two Italian innovation hubs and their common ground.
Digital lending and crowdfunding
In the online lending area, Finanza.tech stands out for its data-driven credit scoring and business lending solutions. As a digital lending platform, Finanza.tech acts as an intermediary between businesses and banks, helping businesses negotiate the best loan terms and access the capital they need to grow.
Another internet-native lending solution, based in Milan Credimi promises to finance companies up to a value of 2 million euros (about 2 million dollars) without anyone ever having to set foot in a bank branch. Once a loan is secured, Credimi has an online platform that allows businesses to easily view and manage their loans and financing services from a central portal.
At the intersection of digital lending and PropTech, two other Italian companies are bringing crowdfunding to the real estate market.
Through partnerships with real estate developers and real estate companies, Demetra and Walliance have built online financing platforms that give retail investors access to an asset class previously reserved for investment funds and high net worth individuals.
Investors simply browse projects, pick one they want to fund, and receive their money plus any accrued returns once the final deal is struck.
While Demetra primarily focuses on debt lending, Walliance also offers equity financing options where investors receive shares in the real estate business they choose to support.
PropTech boom in Italy
Clearly, Italy is emerging as a hub for real estate crowdfunding companies. But one of the best-known Italian PropTech startups, casavohas developed its own vision of buying, developing and selling properties.
The Milan-based company has pioneered a real estate development model in which it automates and streamlines the process of selling a property by using a dynamic pricing model to assess each home’s financial potential, calculating the value after renovation on the database. it has roughly similar properties.
Casavo’s business model has proven successful in Southern Europe as there are many properties available that have huge potential but are either abandoned or haven’t changed hands for decades and are in need of refurbishment.
Having started as a pure home buying platform, Casavo is expanding its services to become a real estate marketplace for buying and selling properties.
After successfully growing its business, first in Italy, then in Spain and Portugal, the startup announced this week its launch in France, following a €400m Series D funding round. (about $408 million), EU Startups reported.
The company said it wanted to continue product development to become an all-in-one real estate provider capable of offering additional services.
Despite Casavo’s lead in providing the PropTech that tomorrow’s European property buyers and sellers will need, the Italian startup is not the only player in the game.
Based in United Arab Emirates Huspy said, the European market is a big prize for PropTech companies around the world. Husky already has a presence in Spain and will use proceeds from its latest $37 million Series A funding round to accelerate its growth across the continent.
Read more: PropTech Startup Huspy Nets $37M Series A
So, while the Italian PropTech scene is thriving, there is no guarantee that Italian companies will be preferred by property buyers and sellers as the European property market becomes increasingly digital.
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