Indemo Review

Indemo Review Summary

Indemo is one of the most unique platforms in 2024. The company offers investments in secured discounted defaulted loans from Spain with an attractive average potential return of 15.1% per year.

While liquidity is limited, Indemo’s products could generate a very solid risk and return ratio for investors who don’t mind locking up their investments for a period of 2 years. 

Main Takeaways From Our Indemo Review:

If you want to earn the best risk-adjusted returns, Indemo should be on your list of active investment platforms.

Are you ready to earn the right yields?

What is Indemo?

Indemo is a regulated investment firm based in Latvia, specializing in discounted debt investments, specifically defaulted loans secured by mortgages in Spain. 

These loans are purchased from Spanish banks at a discount and resold at market value, offering investors a unique opportunity to earn yields from the profit share.

Indemo advertises an expected return of 15.1%, with a minimum loan term of 24 months, providing a potentially high-yield investment option backed by real estate.

Indemo works with SPVs in Spain, such as Tamarindo Vector S.L., to list debts on the platform. These SPVs purchase discounted debts from Spanish banks. Tamarindo collaborates with asset managers like Atlan Advance and Tauris Iberica, who carefully select discounted debts for Tamarindo Vector.

Once Tamarindo Vector acquires the debts, the debt collection process is outsourced to asset servicing companies, which then handle the recovery efforts.

To expand its portfolio, Tamarindo Vector refinances certain debts through Notes on Indemo.

Investors on Indemo can invest in these debts, and when the debt is recovered, the profit is split 50:50 between the SPV (like Tamarindo Vector) and the investors.

Our Opinion On Indemo

Indemo stands out from many other P2P lending platforms currently available. The company focuses on offering investments in discounted, defaulted secured loans from Spain—a niche that no other platform is targeting at the moment.

While Esketit offers investments in discounted unsecured loans through its partner Spanda Capital, Indemo exclusively lists mortgage-backed securities, which sets it apart from similar platforms.

Indemo advertises an annual return of 15.1%, higher than what most established platforms offer.

This is due to the nature of the business model: defaulted mortgages are purchased at a significant discount, which increases potential profits when the debt is sold.

The investment structure is both comprehensive and transparent. Since its launch in November 2023, Indemo has successfully repaid two debts, delivering an impressive average return of 25% per year.

However, such returns shouldn't be expected consistently. To attract new investors, the platform will need to maintain its advertised return of 15%.

In a highly competitive market, where most investors prioritize capital preservation on platforms with proven track records, Indemo will need to demonstrate its ability to deliver strong returns over time.

Should the platform encounter difficulties with its lending partner in Spain, it could significantly hinder Indemo's expansion.

At present, it’s difficult to benchmark Indemo’s unique business model, so comparisons to platforms like EstateGuru may not be fair. It remains to be seen whether Indemo's management can meet its long-term promises.

On the positive side, Indemo has developed a user-friendly platform that makes sense for investments in discounted debts. Its monitoring tools are superior to those found on other real estate crowdlending platforms.

A downside, however, is the lack of liquidity. Investors don’t receive regular payments, which could be a drawback for those seeking short-term investments.

On the flip side, Indemo offers premium returns to compensate for this illiquidity, which may appeal to certain investors. We also assessed the platform's sustainability based on the information from the pitch deck.

Indemo aims to reach a portfolio of €25M by the end of 2025. In our view, this is an ambitious goal. Based on our experience in the industry and current trends, this target may be difficult to achieve, especially given the nature of Indemo’s current offerings and the lack of a secondary market.

Our educated guess is that it will take longer for the platform to reach this portfolio size, so investors shouldn’t expect profitability in the next two to three years.

We are actively testing Indemo and will update this review as new developments occur.

To learn more about our exposure on the platform as well as the internal return rate, visit our P2P lending portfolio page. 

Indemo Promo Code

Indemo offers a unique cashback bonus program called the "Indemo Fast Track," which allows investors to earn a bonus rate that aligns with the European Central Bank's (ECB) monthly index rate.

With the Indemo bonus, new investors can receive an instant reward equivalent to the annual interest from a fixed deposit. To qualify, you must invest a specified amount in a single transaction during the monthly bonus period.

Use the Indemo promo code P2PEMPIRE during your registration for additional benefits.

Note that the Fast Track rates are being updated monthly. 

Requirements

The registration process on Indemo takes at least 15 minutes. You can register as an individual or as a company. The following steps demonstrate the registration process for private investors. 

Please note that Indemo does not accept investors from the UK, as the EU financial services license is no longer valid there. Additionally, users from Bulgaria and Croatia are temporarily restricted from investing on Indemo because both countries are currently on the FATF grey list due to significant AML/KYC deficiencies identified by international organizations.

During the sign-up process, you are required to type in your name, email, country of residence, and the promo code P2PEMPIRE. 

After verifying your email address via the link in your inbox, you must add information about your country of birth, current address, tax details, and whether you are politically exposed. 

In the next step, you will have to pass the sustainability and appropriateness test and answer questions related to your experience in investing and your finances. 

In the final step, verify your identity via Veriff, your verification partner. During this process, you will be asked to scan a QR code on your screen and upload a photo document along with your selfie. 

The Indemo team will then review your registration and activate your account. This usually takes only a few hours. 

Upon activation, you can transfer funds to your investment account. Ensure you top up your account from a bank account in the European Economic Area held in your name.

You will find the deposit information by clicking on “Add Funds” in the top right-hand corner of your screen. 

When transferring funds to your Indemo account, it's important to enter the correct payment details so Indemo can allocate the transfer properly. Typically, both deposits and withdrawals are processed within one business day. After your first deposit, future deposits are credited to your account instantly.

Note that Indemo only accepts investors who are at least 18 years old and reside in EU/EEA.

We recommend activating your 2FA in the Settings menu in your account to increase the safety of your investment account. 

Risk & Return

Investing on any P2P or crowdfunding platform comes with certain risks and you must understand how those risks impact your investment portfolio. 

Indemo currently offers investments in defaulted mortgage-backed loans from Spain with limited measurable returns. During our research, we identified the following risks: 

Platform Risk

Indemo, having launched in 2023, is relatively new in the industry but has already attracted close to €4 million in assets under management. Given its short operational history, this is commendable growth.

During our research, we obtained non-public information indicating that Indemo aims to increase its assets under management to €25 million by the end of 2025.

While this would represent substantial growth, especially for a young platform, we question whether such ambitious projections may be overly optimistic.

In the current market, where many investors lean towards short-term, cash-flow-generating investments, it’s challenging to envision such rapid expansion at an early stage.

The core risk lies in Indemo's ability to sustain operations over the long term. To achieve profitability, the platform will likely need to scale its portfolio to approximately €50 million.

Many smaller competitors in the fintech space have made similarly bold forecasts, which ultimately proved inaccurate. Whether Indemo will follow this trajectory or defy the odds remains uncertain, particularly if shareholder support is needed beyond initial expectations.

Indemo has already raised €1.53 million in equity, signaling that its product resonates with investors. However, like other fintech startups, it faces significant challenges, even as a regulated investment firm in Latvia.

We explored this topic in detail with the CEO, and you can listen to our conversation in the interview below.

To realize its ambitious targets, Indemo must maintain a high-quality portfolio with strong, consistent performance. Any difficulties with debt recovery could lead to diminished investor confidence, posing a serious threat to the platform's viability.

Lender Risk

It's important for investors to understand that Indemo serves as an intermediary between investors and lending companies by listing investment opportunities in the form of Notes on its platform.

The quality of Indemo’s portfolio is largely dependent on the operations of its lending partners, who acquire discounted debts in Spain with the intent to sell them profitably.

To better grasp the risks involved, let’s first explain how Notes are listed on Indemo.

The platform works with debt suppliers such as Tamarindo Vector S.L., a Spanish special purpose vehicle (SPV) that holds mortgage titles on its balance sheet.

Tamarindo Vector is licensed by the Bank of Spain as a real estate lender (Prestamista inmobiliario) and by the Directorate General for Consumer Affairs for loan contracting and intermediation services.

There are several risks tied to the lending companies, including:

We’ve reviewed Tamarindo’s financial report for 2022, which you can access here.

Indemo has informed us that Tamarindo Vector achieved profitability by the end of 2023, although we have yet to review the financials for 2023, as they are not yet published.

Tamarindo works closely with Atlan Advance and Tauris Iberica, companies that handle due diligence, debt management, and debt recovery.

These firms advise Tamarindo Vector on purchasing discounted debts that meet the company’s criteria.

According to its website, Atlan Advance manages a portfolio of over €55 million and has been in operation for more than a decade. It is also registered as a real estate credit intermediary with the Bank of Spain.

Indemo also shared that Tauris Iberica manages over 5,000 assets valued at €500 million.

Unfortunately, there is no public database to independently verify these figures or assess the performance of their assets under management.

Asset Management Services

The risk associated with the lender is directly linked to the quality of asset management services provided by these supporting companies.

Asset management and servicing firms conduct scoring, due diligence, and select the most suitable debts available in the market.

This process involves internal and external valuations, with only about 10% of available debts making it into the portfolio.

These debts are then packaged into Notes and listed on Indemo, along with key metrics such as Price-to-Value and Price-to-Debt.

Indemo's base prospectus outlines specific scenarios that could negatively impact your returns, including:

As you can see, there are numerous risks to consider. While Indemo operates within a robust legal framework, investors should fully understand and accept these risks before committing funds.

Risk Mitigation

To manage risk effectively, Indemo has established strict qualification criteria that govern the listing of new debts on its platform. These rules help ensure that only high-quality debts are offered.

For example, Indemo evaluates debts based on metrics such as the Price-to-Value (PTV) ratio, property type, and the validity of the valuation report. If any of these qualifications are not met, the debt will not be listed.

Indemo only accepts debt backed by residential properties—such as apartments, townhouses, and villas—that are fully built and commissioned, excluding any construction or development projects.

Additionally, Indemo focuses on properties in the most liquid and attractively priced locations in Spain, including major cities, surrounding areas, and coastal regions, specifically within the mid-price segment.

One important aspect to consider is that Tamarindo Vector (lender) buys the debt from its own funds before refinancing it through Notes on Indemo.

This means that investors don’t have to wait until the discounted debts are purchased but can invest in Notes consisting of various debts in various debt recovery stages.

Performance Scenarios

According to the key information document provided by Indemo, the return on the investment in discounted secured debts depends on various factors. Here are some relevant data that may help you to better understand the risk and return on Indemo. 

The following scenario calculations are based on an average Price-to-Value (PTV) and Price-to-Debt (PTD) ratio of 62% for the Note.

Stress Scenario:
Debt recovery fails, and the real estate properties are taken over and sold at a 44.3% price drop after 3.5 years, reflecting Spain’s largest property price decline during the 2008-2014 mortgage crisis. Auction taxes, fees, and brokerage commissions are included.

Unfavorable Scenario:
After two years, properties are sold at auction for 15% below the appraised value, with taxes and fees included.

Moderate Scenario:
A pre-trial arrangement allows the debtor to repay 90% of their obligations within 18 months.

Favorable Scenario:
A pre-trial arrangement allows the debtor to repay 90% of their obligations within 9 months.

Indemo advertises returns based on the moderate scenario, signaling the company's confidence in operating within the moderate to favorable range.

However, for Indemo to achieve its financial objectives, it will need to consistently deliver on these expected returns.

If investors experience stress or unfavorable scenarios, it could significantly undermine confidence in the platform, leading them to seek alternatives elsewhere. Maintaining performance within the advertised scenarios is crucial for sustaining investor interest.

€20,000 Protection Scheme

Indemo SIA is part of the national investor compensation scheme, established under EU Directive 97/9/EC. This scheme provides protection by compensating investors if Indemo SIA is unable to return financial instruments or cash. The maximum compensation an investor can claim is 90% of their net loss, capped at €20,000.

It's important to note that this compensation does not act as a buyback or group guarantee. If market or lender-related risks materialize, investors may not receive any compensation under this scheme.

Taxes

Since investors on Indemo are investing in transferable securities (Notes), Indemo, as the withholding agent, must deduct withholding tax from individual investors. 

For EU/EEA tax residents, the standard tax rate is 5%, unless reduced by an applicable double tax treaty—such as in Lithuania, where the rate is 0%. If you're investing through a corporate entity, the withholding tax rate is 0%.

No additional tax documentation is needed, as Indemo relies on the information provided during the onboarding process. 

As a MiFID-regulated investment firm offering EU securities, Indemo provides a tax report that allows investors to easily offset the tax paid on the platform against the tax due on passive income (interest) in their home country, avoiding any additional tax liabilities.

Usability

The team behind Indemo has put significant effort into enhancing the platform's usability, tailored specifically for investing in discounted mortgage-backed debts in Spain.

Upon logging in, you’ll immediately see the available Notes, complete with the expected return, Note amount, Price-to-Value ratio, and Flow progress.

By clicking the checkmark button in the top right corner of a Note, you can review the actual discounted mortgages displayed on a map, giving you a clear view of the asset locations.

Indemo primarily focuses on financing mortgage-backed securities in coastal areas and larger cities, as these properties tend to be more liquid than those in rural areas.

By selecting the Note number, you’ll open the Flow view, where you can see both the debts included in the Note and the progress of loan recovery. One Note may include multiple debts in various recovery stages, as shown in the screenshot below.

The further along the recovery process, the higher the liquidity of your investment. While the platform suggests a 24-month term, you may receive your funds and profit earlier if the asset managers are able to sell the debt sooner.

In the “Objects” tab, you can explore more detailed information about the properties within the Note, including the price-to-value ratio and current status. The orange bar chart shows the portion of the debt allocated to that specific Note.

You can also click on individual properties to learn more about them and view the attached appraisal reports, which are available for all listed properties.

The “Note Summary” tab provides additional details about the Note. After investing, you can monitor your portfolio under the “Asset” section in the navigation bar.

Indemo Auto Invest

Indemo offers an Auto Invest feature, allowing you to set predefined criteria and automate your investments. However, if you're new to the platform, we recommend starting with manual investments to familiarize yourself with the options available.

Liquidity

As of our testing, Indemo does not yet offer a secondary market. However, during our conversation with the CEO, it was confirmed that a secondary market is planned for the first half of 2025.

Given that debt recovery on Indemo can take an average of two years, investors should be prepared to commit their capital for the medium term. In return, they may benefit from premium returns on their investments.

Additionally, Indemo aligns its returns with fixed annual deposit rates for newly invested capital, providing an incentive for investors to explore the platform. This has been made possible with Indemo’s “Fast Track” campaign.

It’s important to note that once you invest on Indemo, you won't be able to withdraw your funds until the debt is recovered, which can range from a few months to several years.

Support

During our testing, we contacted the CEO directly and received in-depth answers to all of our questions within one to three business days.

We also engaged with the platform’s support team, which handles client onboarding, and their response time was typically within one business day.

We rate the quality of the support as high. If you use the live chat function on Indemo’s website, you can expect a response within a few minutes or hours, depending on the complexity of your query.

Indemo Alternatives

Indemo is a high-risk, high-return platform with irregular payments and longer investment terms compared to most other platforms. While it has delivered returns above what was advertised, its track record is still limited. As a result, you might want to explore other alternatives to diversify your investments.

Fintown

Fintown is a Czech-based platform offering investments in operational rental units in Prague. Investors can earn monthly rental income from these properties. Fintown also provides higher-yield investment opportunities through development loans managed by Vihorev Group. The platform only lists in-house loans, which helps reduce external risks that investors might face on platforms like EstateGuru. Learn more in our Fintown review.

InRento

For a regulated platform with a flawless portfolio and monthly rental income, InRento is worth considering. It offers above-market returns on mortgage-backed loans used to refurbish and manage rental properties in Lithuania and Poland. Discover more in our InRento review.

LANDE

If you're looking for a more traditional crowdfunding platform with secured, higher-yielding investments, LANDE is a solid option. This regulated Latvian platform specializes in agricultural loans, secured by land, crops, or machinery. Learn more in our LANDE review.