Moldovan fintech platform Fagura got the green light from Romania’s Financial Supervisory Authority (ASF) to start operations in the country of 20 million people. Key elements of this approval process included demonstrating a robust product and technology as well as a solid business plan for the medium and long term, proven risk assessment capabilities, establishing a legal entity in Romania, and committing to transparency and reporting, the company said in a statement.
The fintech will expand into the Romanian financial market under the Fagura.ro domain, acting as a crowdfunding and investment platform which will connect individual investors with borrowers seeking funding for various purposes, focusing on small business financing.
Launched in May 2019 in Moldova, Fagura has already intermediated loans in the amount of €2.5mn. The average maturity of the loans was 23 months while the average interest rate was 22.8%.
“The expansion in Romania represents a significant step in Fagura’s journey. This strategic move brings with it several advantages: the diversification of the customer base, a significant increase in the number of potential investors and borrowers and, last but not least, our first step into the European Union arena,” said Fagura CEO Tudor Darie, who is a serial entrepreneur with prior successes in fintech, digital media, digital advertising, and IT services.
The company will initially focus on funding small enterprises and will at a later stage increase the choice of financing options on the market, COO Cristian Pasa explained. With a five-year stint at Bloomberg and experience in a fintech startup, Pasa has been key in shaping the company’s operational strategies.
Fagura’s expansion into Romania is a defining moment in the company’s development and if executed well, it will lead to the growth of the community and the entrepreneurial landscape. The company remains committed to having a significant role in the Romanian fintech arena and to reshaping the future of financial services.
In the long term, Fagura aims to become a digital bank where people can manage online their entire financial life. Its mission is to make a revolution in the financial system and create exceptional services where customers can get, multiply and control their money at a click away.
