In this article, I will review the crowdfunding platform, Afranga. I first came across this platform while researching regulated investment opportunities in Europe. Afranga stood out with its advertised yields of up to 18% and its official European Crowdfunding Service Provider license. This noteworthy combination of high potential returns and regulatory oversight prompted me to try it for myself.
As with all my reviews, I have tested the platform with my own money to provide a genuine, first-hand account. I’ll walk you through the process of opening an account, investing, and I will also share my returns on the platform. By the end, I’ll provide my assessment on whether investing on Afranga could be a solid option for your portfolio.
What is Afranga?
Afranga is a regulated crowdfunding platform based in Bulgaria that allows you to invest in business loans. It provides a different focus from many platforms centered on consumer credit by connecting investors with vetted, high-growth companies, primarily from Bulgaria and the Czech Republic.
The main attraction is the high yields, with advertised rates that can reach up to 18% per year. The platform places a strong focus on transparency and security, underscored by its license from the Financial Supervision Commission (FSC) of Bulgaria, which allows it to operate across the EU. Instead of a buyback guarantee, Afranga's security model is built on a foundation of rigorous due diligence for each borrowing company.
A significant benefit is that investing on Afranga is completely free for investors. There are no fees for opening an account, depositing funds, investing, or withdrawing money, ensuring your returns are not diminished by platform costs.
What returns can I expect on Afranga?
The platform advertises attractive returns of up to 18% annually, placing Afranga among the higher end of the European investment platform market. During my time investing, I have consistently seen a good selection of loans available, typically yielding between 14% and 18%. For investors looking to enhance their portfolio's growth, these returns are certainly compelling.
Is it safe to invest on Afranga?
The safety of funds is a critical consideration for any investment platform, and Afranga has a clear approach. When I evaluate a platform, I look at three key areas: its risk and guarantee model, the company and its team, and the loan originators it partners with.
Risks & Guarantees on Afranga
Afranga utilizes a different and more proactive approach to risk management compared to many of its peers. It does not offer a buyback guarantee, a feature that, while popular, can sometimes be misinterpreted. Instead, the platform provides investors with the tools and information to manage risk themselves. This model is built on a thorough due diligence process for every company before it can issue a loan.
Investors are given full access to a detailed Key Investment Information Sheet (KIIS) for each loan, outlining company details and risk disclosures. This transparency allows you to make an informed decision based on comprehensive data. This model is well-suited for the investor who prefers more control and is comfortable conducting their own analysis, aligning with the platform's higher potential returns.
The Company & The Team
Founded in 2021, Afranga is led by CEO Svetlin Sabev, who brought over eight years of lending industry experience to create a more efficient and reliable platform. The team's professional background adds to its credibility. The Head of Compliance, Yonko Chuklev, for instance, has a strong profile with recognition in Forbes 30 under 30 Bulgaria.
The platform's EU crowdfunding license is a significant mark of credibility. This regulatory status means Afranga must adhere to strict EU rules concerning investor protection and transparency. Furthermore, all investor funds are held in segregated accounts with Lemonway, a licensed French payment institution. This structure provides an important layer of security by keeping your money separate from the company's operational funds.
Loan Originators
The quality of loan originators is key to performance, and Afranga uses its "in-group" model as a core part of its strategy. The platform was developed in connection with Stikcredit, a major lender, which gives Afranga significant oversight and control over the loan underwriting process. This close relationship ensures a deep understanding of the loan portfolio's quality and can be seen as a built-in layer of risk management.
How to start investing on Afranga
Getting started on Afranga is a straightforward process. The account registration is fully digital and took me less than five minutes, requiring just basic information and an ID for verification.
Funding my account was equally simple. I made a standard SEPA transfer, and the money was credited to my secure Lemonway account within one business day. I also tested the withdrawal process, a crucial check for any platform. The withdrawal was processed smoothly and the funds arrived in my bank account in two days, a positive sign of operational reliability.
Manual Investment Control
Once your account is funded, the next step is to build your portfolio. Afranga utilizes a manual investment approach, which is a deliberate design choice. Instead of an automated tool, it gives you the control to hand-pick each investment.
This allows you to personally review each opportunity using the detailed KIIS, ensuring your portfolio is built according to your own criteria. For investors who prefer to be actively involved in their financial decisions, this level of control is a key benefit and is instrumental in constructing a carefully selected portfolio.
My Results with Afranga
Now, let's discuss performance. After actively investing on Afranga for over a year, my returns have been very good. By exporting my account data and using a portfolio tracker, I've calculated my exact performance.
My current annualized return (XIRR) stands at a solid 14.75%. This is a strong result that aligns with the platform's advertised rates and demonstrates the potential of its high-yield loan offerings. Interest payments have been consistent, and my experience with the platform's operations has been positive.
Conclusion: Should You Invest on Afranga?
Yes, for the right type of investor, Afranga is a compelling option. It offers a solid platform that successfully combines high potential returns with the security of EU regulation.
Pros:
High Potential Returns: Yields of up to 18% are available.
EU Regulated Platform: Operates under a European Crowdfunding license.
No Fees for Investors: Free to deposit, invest, and withdraw.
Manual Investment Control: Gives you full control over your portfolio selections.
Detailed Loan Information: Provides transparent data for informed decisions.
Cons:
No Buyback Guarantee: The investment risk lies with the investor.
No Auto-Invest Feature: Requires active management.
Limited Loan Originator Diversification: Primarily focused on in-group lenders.
Afranga is best suited for investors who are comfortable with conducting their own due diligence and prefer an active role in managing their portfolio. If you are willing to exchange the passive nature of an auto-invest tool for greater control and higher potential returns within a regulated framework, then I would recommend considering Afranga for your portfolio.