I love to diversify my Peer-to-Peer lending investments on as many great platforms as possible, which is why I continuously review new platforms & share my experiences with those platforms on my site. In this article, I will provide a comprehensive review of the Peer-to-Peer lending platform Modena, which I added to my portfolio in mid 2025.
In this detailed review, I will tell you what I think are the biggest strengths (and weaknesses) of the platform, dive deep into their unique vault system, analyze their financial performance, examine their regulatory status, and share my honest assessment of whether you should consider adding Modena to your investment portfolio. Let's start!
What is Modena?
Modena operates as a P2P lending platform that allows investors to purchase consumer loan claims and Buy Now, Pay Later (BNPL) claims to earn interest payments over time. Unlike many newer platforms in the space, Modena has been operating since 2019, giving it over 5 years of operational history. The company is incorporated in Estonia as Modena Estonia OÜ and operates under proper regulatory oversight.
What immediately caught my attention about this platform is their unique approach to P2P investing through their "Vault" system, which promises to completely automate the investment process. They offer competitive interest rates of up to 11% annually, which is above average for the European P2P lending market. They also focus on investor protection by providing buyback guarantees and operating under Estonian regulatory supervision.
The platform primarily deals with consumer loans and Buy Now, Pay Later claims, which provides a focused investment strategy rather than trying to cover multiple loan types. This specialization can be both a strength and a limitation, which I'll explore further in this review.
Since launching their investment platform (modena.capital), they've built up some solid operational metrics. The platform now serves over 100,000 customers using their broader payment and financing ecosystem. They've financed €3.2M through their investment platform with an impressively low default rate of 0.4%. Currently, they have 621 active platform users, which is relatively small but growing. Across their entire business, they've issued €12.57M in total financing.
The Modena Vault System: How It Works
One of Modena's most distinctive features is their automated "Vault" investment system. Instead of manually selecting individual loans like on traditional P2P platforms, Modena automatically invests your funds across a diversified portfolio of consumer loan claims. This approach removes the need for active management while potentially reducing risk through automatic diversification.
They offer two main vault products:
Dynamic Vault:
The Dynamic Vault offers up to 8.5% annual returns with a 30-day lock period for funds. This option provides more flexibility for investors who may need quicker access to capital.
Fixed-Term Vault:
The Fixed-Term Vault provides up to 11% annual returns with a 12-month lock period. This option delivers higher returns in exchange for a longer commitment.
What I particularly appreciate is their configurable payout system. You can set what percentage of your monthly earnings gets automatically paid out to your bank account versus being reinvested for compound growth. This flexibility makes it suitable both for investors seeking regular passive income and those focused on long-term wealth building.
The automation extends to the entire investment process - once you deposit funds and configure your settings, the platform handles loan selection, diversification, and even handles the buyback process for defaulted loans without any intervention required from investors.
Financial Performance and Track Record
Having been operational since 2019, Modena has built up a meaningful track record that we can analyze. Their financial performance shows both strengths and areas of concern that potential investors should understand.
Recent Financial Performance (2024-2025):
In 2024, the company achieved revenue of €1.364M with a net profit of €203K, showing profitability. Their 2025 turnover reached €415,053 with a balance sheet total of €2.588M. The company currently employs 11 people with an average salary of €3,960 per month.
Historical Growth:
The company has shown impressive revenue growth, with 2023 revenue of €615,946 representing a 326% increase from 2022's €155,301. However, they were still reporting losses in 2023 (-€201,728), though this was a significant improvement from 2022's loss of -€438,702.
Key Platform Metrics:
The platform has issued €12.57M in total financing with an exceptionally low default rate of 0.4%. Currently, they have 621 platform users, which represents a smaller scale compared to major platforms but indicates they're still in a growth phase.
The low default rate is particularly impressive and suggests either conservative lending practices or effective collection processes. However, the relatively small user base indicates the platform is still in a growth phase compared to established players in the market.
Regulatory Status and Safety Measures
One of Modena's strongest selling points is their regulatory compliance and safety measures. This is crucial in the P2P lending space where many platforms operate in regulatory gray areas.
Regulatory Oversight: Modena Estonia OÜ operates as a licensed creditor under the supervision of the Estonian Financial Supervisory Authority (FSA). This provides significant investor protection compared to unlicensed platforms. Additionally, they operate Modena Payments OÜ as a separate licensed European payment institution, demonstrating their commitment to proper regulatory compliance.
Investor Protection Measures:
The platform offers several investor protection measures. They provide a buyback guarantee where loans that are 35-90 days late are automatically bought back. Investor funds are kept in segregated accounts, separate from company operational accounts. They maintain GDPR compliance with proper data protection and privacy measures, and use automated identity verification with robust KYC processes.
Corporate Transparency: The company maintains good transparency with regular financial reporting and clear disclosure of their business model. They explicitly state that they are not a crowdfunding platform, credit intermediary, or investment firm, but rather operate specifically as a licensed creditor selling loan claims to investors.
Leadership Team and Company Background
Understanding the team behind a P2P platform is crucial for assessing its long-term viability. Modena has assembled a team with over 70 years of combined fintech and financial services experience. The leadership includes experienced professionals with backgrounds spanning engineering, finance, and business development, providing confidence in their ability to navigate the complex P2P lending landscape and manage platform growth effectively.
The Company Evolution and Growth
Modena's growth story is quite interesting and shows their evolution from a payment company to a comprehensive fintech platform:
Timeline of Development:
The company's journey began in October 2019 when Modena Estonia OÜ was established. They started Buy Now, Pay Later services in January 2020, then obtained their consumer lending license in August 2021. October 2021 saw the establishment of Modena Payments OÜ, followed by their first consumer credit contract signed in December 2021. A major milestone came in May 2022 when Modena Payments OÜ received their European payment institution license. Recent achievements include reaching 75,000 customers in September 2024, signing their 250,000th financing contract in October 2024, and establishing the Modena.capital investment platform in November 2024.
This evolution shows a methodical approach to building a comprehensive fintech ecosystem, with the P2P investment platform being the latest addition to their services.
Getting Started: The Investment Process
The onboarding process with Modena is refreshingly straightforward compared to many P2P platforms I've used:
Account Opening: Registration and verification can be completed in approximately 3 minutes according to their website. In my experience, the process was indeed quick and straightforward, requiring standard KYC documentation.
Minimum Investment: The €50 minimum investment makes the platform accessible to new P2P investors who want to test the waters without significant capital commitment.
Deposit Methods: Bank transfers are the primary funding method, which is standard for European P2P platforms. Deposits are processed efficiently without excessive delays.
Investment Configuration: Once funded, you select between Dynamic or Fixed-Term Vault based on your risk tolerance and liquidity needs. The configuration process includes setting your automatic payout percentage - anything from 0% (full reinvestment) to 100% (complete monthly withdrawal).
Ongoing Management: The beauty of Modena's system is that once configured, it requires minimal ongoing attention. Monthly statements are provided, and the automated systems handle loan selection, collection, and buybacks.
Returns and Performance Analysis
Based on my experience and the platform's advertised returns, here's what investors can realistically expect:
Dynamic Vault Performance:
The Dynamic Vault targets returns of up to 8.5% annually with a 30-day liquidity period. This option is suitable for investors wanting flexibility and offers lower returns but faster access to capital.
Fixed-Term Vault Performance:
The Fixed-Term Vault targets returns of up to 11% annually with a 12-month commitment required. This option provides better returns for patient investors and offers compound growth potential with reinvestment.
Market Context: These returns are competitive within the European P2P lending market. The 11% target return is particularly attractive for investors willing to commit funds for a full year, while the 8.5% Dynamic Vault return provides a good balance of yield and liquidity.
Risk-Return Profile: The 0.4% default rate suggests that these returns come with relatively controlled risk, though past performance doesn't guarantee future results. The buyback guarantee provides additional protection, though investors should understand the 35-90 day timeframe.
Platform Features and User Experience
Automated Investment System: The vault system truly delivers on its promise of hands-off investing. Once configured, the platform handles all loan selection and diversification automatically.
Monthly Payout System: The configurable monthly payout feature is excellent for creating passive income streams. You can adjust the percentage at any time based on your changing needs.
Reporting and Transparency: Monthly statements are clear and comprehensive, showing your portfolio performance, earnings, and any defaults or buybacks.
Customer Support: The platform provides good customer support with phone lines and email support available. The team is responsive to investor questions and concerns.
Bonus Programs: Modena occasionally offers cashback campaigns and referral bonuses, providing additional ways to boost returns.
Platform Strengths and Weaknesses
After several months of using Modena, here are the key strengths and weaknesses I've identified:
Major Strengths:
The platform excels in regulatory compliance with full FSA licensing that provides investor protection. Their automation through the vault system eliminates the need for active management, while maintaining an exceptionally low 0.4% default rate. The flexible monthly payout options are valuable, and the team brings over 70 years of combined fintech experience. The company maintains transparency with clear disclosure of their business model and risks. The accessible €50 minimum investment makes it easy to start, and they're part of a growing ecosystem with over 100,000 customers.
Notable Weaknesses:
The platform's limited scale with only 621 users suggests it's still in an early growth stage. There's geographic concentration focused only on the Estonian market, and the buyback period of 35-90 days is longer than the industry standard of 30 days. Some mixed online reviews have raised concerns about their business model, and the company reported losses through 2023. The platform lacks a secondary market, limiting liquidity options beyond vault terms, and has limited loan diversity with focus only on consumer loans and BNPL.
Risk Assessment and Considerations
Platform-Specific Risks:
The small user base indicates early-stage growth, and there's geographic concentration in the Estonian market. The company experienced financial losses in recent years, though this is improving. The platform also offers limited diversification compared to multi-market platforms.
General P2P Lending Risks:
Default risk exists despite buyback guarantees, and regulatory changes could impact operations. Economic downturns could increase default rates, and there's platform risk if the company faces financial difficulties.
Mitigation Factors:
The platform benefits from strong regulatory oversight from the Estonian FSA and has an experienced management team. Current default rates are low, lending practices appear conservative, and investor accounts are segregated.
Should You Invest on Modena?
After extensive analysis and personal experience with the platform, here's my honest assessment:
Modena works well for investors who:
The platform is ideal for investors who value regulatory oversight and compliance, prefer completely automated investing, and want regular monthly income through automatic payouts. It suits those comfortable with smaller, growing platforms who seek diversification in Estonian consumer loans. Investors who appreciate hands-off investment management and want competitive returns with buyback protection will find it appealing.
Consider alternatives if you:
You should look elsewhere if you prefer larger, more established platforms, require secondary market trading capabilities, or need higher return potential than 11%.
My Investment Results and Recommendations
Using the Fixed-Term Vault with 50% monthly payouts and 50% reinvestment, my experience has been positive so far. The automated systems work as advertised, monthly payments arrive on schedule, and the platform's reporting is clear and comprehensive.
The 0.4% default rate appears accurate based on my portfolio performance, and the buyback guarantee has functioned properly when needed. The Estonian regulatory oversight provides peace of mind that's often missing in this space.
However, I'm maintaining a relatively small allocation (under 5% of my total P2P portfolio) due to the platform's size and some of the concerns I've identified around their recent financial performance and limited scale.
My Recommendations:
I recommend starting small by beginning with their €50 minimum to test the platform. Diversify broadly and don't allocate more than 5-10% of your P2P investments here. Monitor their growth and financial performance closely. Choose your vault carefully by considering your liquidity needs when selecting vault type. Most importantly, understand the risks and be aware of the platform's small scale and recent losses.
The Estonian regulatory oversight and experienced team are definite positives, but the platform's scale and some mixed reviews suggest a cautious approach is warranted. As with any P2P investment, never invest more than you can afford to lose and always maintain diversification across multiple platforms and geographies.
Ready to Get Started?
For investors seeking automated, regulated P2P investing with competitive returns, Modena deserves consideration - just ensure it fits appropriately within your broader investment strategy and risk tolerance. The platform offers a unique combination of regulatory oversight, automation, and competitive yields that make it an interesting addition to a diversified P2P portfolio.
Try Modena with their €50 minimum investment - start small, test the platform, and see if it aligns with your investment goals. The low barrier to entry makes it easy to evaluate whether Modena's automated approach and Estonian regulatory framework provide the right balance of returns and protection for your portfolio.
Remember to diversify across multiple platforms and geographies for optimal risk management, and never invest more than you can afford to lose in any single P2P platform.