Latvian startup spotlight: Creamfinance

 Once a week we catch up with a trending Latvian startup, check in with their progress and future plans. This week's guest: fintech service Creamfinance.

 About Creamfinance: Get a speedy and reliable personal loan.

Questions answered by Creamfinance co-founder Matiss Ansviesulis

1. How did you do in 2015 and what are your milestones for 2016?

The numbers are even better than predicted. In terms of revenue – €25 mil, principle – €75 mil. In 2016 we are looking forward to doubling these numbers. Our customer base is growing and we’re experiencing business growth. The year 2015 was profitable despite the >100% growth.

2. Who are your biggest competitors? Which is your fastest growing market?

There’s one major competitor – Kreditech. Our fastest growing market is Georgia. However, it is necessary to mention that Creamfinance has become a top 5 online lender in Europe in the period of 4 years and competes with market leaders having more than 10 times the financing.

3. What will be your next markets to expand to?

We focus on big markets with relatively decent infrastructures, online and mobile penetration, but where bureaucracy prevents the consumers from obtaining bank loans. This means a good level of readiness for our service.

Our main focus is now on the Caucasian market. We have recently attended a big conference in Kazakhstan and are doing everything to see if getting into Kazakhstan makes sense for our business in terms of convenience. One of the biggest disadvantages is the political and currency risk that we have to find a way around.

We are also looking at South America and doing research on Mexico and Brazil, but this is our second priority. 

We might also expand our IT presence in the DACH region and recruit in these markets.

4. Are there any new implementations of services underway?

The next big thing we are working on is what we call a one-click loan. This is how we differentiate ourselves from competition, we focus on convenience. Our product strategy is based on achieving one-click loan and soon we are planning to launch prototypes where clients will be able to borrow with one click. We are also expanding the sizes and range of our loans from a few hundred Euros for a month, to a few thousand for a lending period of several years.

5. What are the main reasons for relocation, besides the biggest team being in Poland?

Good access to talent, more welcoming regulatory-wise, a big market. You have to have a strong team, but it’s really difficult to get them all in a country as small as Latvia.  Since the country is small, being based in Latvia forces you to think globally from the first day of business. Poland was chosen as headquarters intending to strengthen our offering: thePolish economy is second largest in Central Europe and sixth largest in the EU. At the moment, headquarters of Creamfinance are located in a prestigious financial district in Warsaw.