Robocash group was created in 2013 in Russia by Sergey Sedov. Later in 2017 peer to peer lending platform know as Robo.cash launched. Robocash group focuses mainly into short term loans and this is what is offered on their platform. I started using this platform since May 2019 and this is my unbiased review of my experience using Robocash platform.
Main facts about Robocash platform and group
As always I like to start with a small review of the main facts about each p2p platform and its holding company.
Company and group facts:
- Established in 2013.
- CEO: Sergey Sedov.
- Group consists of a couple of companies in different countries all working with loans.
- Employ over 1 393 staff all over the world.
- Around 8000 investors inside the platform.
- Over 1 million € in profit for platform investors.
- Offers loans from 5 markets.
Robocash leadership review
Robocash group is being led by Sergey Sedov. There isn’t a lot of information about him on the English side of the internet, but from what I gather, he is in lending business since 2010 when he had a cofounded another business, but in 2013 he created Robocash robo lending system that later transitioned into Robocash group.
Sergey Sedov is quite educated and holds a PhD in Economics from the Institute of Economics at the Russian Academy of Sciences.
Other than this information, there isn’t a lot of information about him on the English side of the internet.
Robocash platform business plan review:
Robocash business plan is to create a platform, where investors could deposit money and leave for Robocash management according to investors desires. Most loan originators belong to the same Robocash group and given that the platform does not allow to invest manually, this means that you basically deposit money to a financial group and they pay you interests. But this does also introduce extra risks to the investors as you have absolutely no control over investments other than selecting from few loan originators, desirable interest rate and length of your investment.
And I highly doubt this business model will change any time soon, given that currently it seems to work just fine for the investors and the Robocash group.
Currently, there are 5 loan originators working in 5 different countries. . All other countries have one loan originator each. Bellow, I made a map to get a better picture of where loan originators are placed.
- Short term unsecured loans. Unsecured loans mean that there are no morgade attached to them, but all loans on this platform come with the buyback guarantee.
- Loans range from 14€ to 420€ and have a duration from 7 to 30 days.
Things I like:
- Does not require any management from the investor. You can set it and forget it. There also is a feature that allows you to automatically withdraw your cash once it reaches 50€.
- Good and stable returns. So far every month is above 1% in gains.
- Minimal cash drag. Even with high returns, the platform manages to invest all of my money without long delays.
- Diversification between countries.
- Short term loans. The general rule of thumb is that long term borrowers can’t predict their future and they might find themselves in a situation where they can’t repay their loans. Investing in short term loans helps to minimize this issue. Of course worth mentioning that short term loans often come with a higher interest rate.
- All loans come with a buyback guarantee.
Things I dislike:
- No control over your investments. You are forced to use Auto investment tool.
- Loan originators and platform owners are in the same group. This means that platform managers interests might not always work for investors.
- No manual investing. Although automated investment helps to save time, on some platforms I prefer to invest manually, simply because it helps me to better evaluate and choose loans. Of course, it helps that every loan has a buyback guarantee in case it fails to be repaid in time.
- Russian company. Even though Robocash peer to peer platform works as a Croatian entity, behind it stands a Russian company. And of course everyone opinion will be different, but for me, the Russian market just looks like an inherent risk.
My Robocash portfolio returns review:
Robocash so far provided me decent returns. To properly compare my returns it would be better to ignore the first month given that most loan payments were due only the following month.
As always I recommend checking my monthly portfolio reviews as it will show most up to date information about each peer to peer platform performance.
My investment strategy review on Robocash platform:
Given a lack of control for your own investments, there isn’t a lot of space for an investment strategy. I just set my desired interest rate to 12% and allow auto-invest to invest in all loan originators. I keep my investment period from 3 days to 180 days. Reason for this is that this allows me to exit the platform in a relatively short time frame. And at the same time, shorter duration loans should have a better success rate.
Given that I am currently focusing on growth, I do reinvest all of my gains and will continue doing so for foreseeable future. As for this platform itself, I try to use it as my main exposure to Russian and Kazakhstan markets. Because of this, I try to avoid loans from those two countries in other platforms.
In conclusion for this Robocash review:
Robocash is a peer to peer lending platform focusing on short term loans and offering great returns with the ability to diversify between multiple loan originators working in different countries.
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