Scramble Review 2024: Invest in Promising Consumer Brands

I love to diversify my 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 review the investment platform Scramble, which I added to my portfolio in 2024.

In the article, I will tell you what I think are the biggest strengths (and weaknesses) of the platform, how to start using it, and what you can expect from investing on the platform. Let's start!

What is Scramble?

Scramble is an innovative investment platform that bridges the gap between investors and consumer goods brands seeking growth capital. With over €8.3 million invested in various brands and a growing community of more than 18,200 registered users, Scramble is carving out a niche in the alternative investment landscape. The platform offers investors the opportunity to fund batches of loans to carefully selected consumer goods companies, providing them with short-term capital to fuel their growth ambitions.

What sets Scramble apart is its focus on consumer goods brands that exhibit high sales margins and are led by competent teams of co-founders committed to successful growth. By connecting investors directly with these promising businesses, Scramble enables a symbiotic relationship where investors can earn attractive returns while supporting the growth of emerging brands.

What returns can I expect from investing on Scramble?

Scramble offers competitive returns that are quite enticing, especially when compared to traditional investment vehicles. The platform provides two main loan groups for investors to choose from, each with its own risk and return profile:

Group A (Casual Investors): Investors can earn up to 1% per month on the outstanding loan amount, which translates to a net annual return of up to 12.4%. This group is designed for those who prefer a more conservative approach while still enjoying substantial returns.

Group B (Advanced Investors): For those willing to take on a bit more risk for higher rewards, Group B offers returns of up to 25% over a 6-month period. This option is tailored for investors looking to maximize their earnings potential. Both loan options are short-term, lasting 6 months, with Group A offering monthly repayments that help reduce the risk of failure by decreasing the capital at risk each month. Group B investors receive their repayments at the end of the term.

Is it safe to invest on Scramble?

The question of the safety of the investors funds is central when investing on a platform, as they will be managing all the money that you deposit on the platform and invest it in the projects. When reviewing a new platform before adding it to my portfolio, I look at three things: what the platforms offers in terms of guarantees, the company itself (and their team), and finally the source of the projects present on the platform.

Risks & guarantees on Scramble

Safety is a paramount concern for any investor, and Scramble has implemented several measures to protect its investors' capital:

Co-founder Guarantees: Each co-founder of the borrowing business guarantees to repay up to 40% of the loan with their personal lifetime income. In scenarios where there are multiple co-founders, these guarantees can cover up to 80% or even 100% of the loan amount. This personal commitment underscores the co-founders' confidence in their business and aligns their interests with those of the investors.

Skin in the Game: For Group A, there is an added layer of protection as the co-founders have significant equity stakes in their businesses. This "skin in the game" ensures that they are fully invested in the success of their companies, which bodes well for investors.

Monthly Repayments (for Group A): The monthly repayment structure reduces the capital at risk over time, as investors receive portions of their principal and interest each month. While no investment is entirely without risk, Scramble's model incorporates several safeguards to mitigate potential losses and enhance investor confidence.

The company & the team

As I mentioned earlier, the company is incorporated in Estonia. As for all platforms I add to my portfolio I checked if the company was officially registered in Estonia, and it is indeed.

It was also very easy to find information about their team, which is something I really like to see on such a platform.

As for all the platforms I invest on, I checked the profiles of the management team of the platform to see their experience in the field. Especially here, as they put the experience of their team as a strong argument for the performance and reliability of the platform.

And indeed, they do have a really strong team. Their CEO for example, Kamil Kurmakayev, has a strong experience in the field:

The rest of their team is composed of really experience people as well, like their CMO, Ruslan Klymenko:

So definitely a strong team of professionals with a lot of experience in the finance field, which is a really good point for this platform.

How are brands selected?

I always checked where the projects are coming from on a platform, as this is really important for the security of your investments.

Scramble's brand selection process is centered around supporting the best companies by carefully choosing a limited number of brands committed to effective development and financial well-being.

The process involves three key steps.

First, they analyze the founder's background, focusing on education, professional experience, reputation, network, leadership qualities, and entrepreneurial background to assess their ability to run the business effectively.

Second, they evaluate the business health, looking for high growth potential and ensuring due diligence to assess potential risks.

Lastly, they assess the legal safety of the company, conducting thorough due diligence to ensure business compliance and implement a risk mitigation framework, thereby reducing legal uncertainty and increasing the security of the funding process.

Getting started with Scramble

It is actually really easy to get started with Scramble and have your money start generating interests on the platform.

The first step is to open an account and get verified. This was done really quickly, and including the ID verification part it was all done in under 5 minutes.

Next, you will have to deposit funds in your account to start investing in loans and generate interests. This is also really to do with Scramble as you can do it via a bank transfer.

They also have an option to top-up with Revolut in a matter of seconds, which is nice to get started.

Once this is done, you can actually start investing in brands on the platform.

What I liked is that they have a full history of the previous investments in brands of the platform, which is great to see what to expect:

From your profile, you can explore what brands are currently available for investments:

From there, you can get details about each brand just by clicking on them:

Note that at the moment, there is a cashback bonus with a €5 bonus for every €100 investment in Group A, for the first investment on the platform.

My Results so far with Scramble

Having ventured into the world of alternative investments, I decided to explore Scramble as a means to diversify my portfolio.

I was particularly drawn to the platform's focus on consumer goods brands and the opportunity to support emerging businesses with strong growth potential.

I started by investing in Group A loans to familiarize myself with the platform while mitigating risk. I will of course update this section as I get more results from the platform.

Throughout my journey with Scramble, the platform's customer service has been responsive, addressing any queries I had promptly.

The overall experience has been positive, and I plan to continue investing through Scramble as part of my broader investment strategy.

Should you invest on Scramble?

Deciding whether to invest on Scramble ultimately depends on your individual financial goals and risk tolerance.

Here are some considerations to help you make an informed decision:

- Attractive Returns: Scramble offers competitive returns that outperform many traditional investment vehicles. With net annual returns of up to 12.4% for Group A and up to 25% for Group B, the potential for earnings is substantial.

- Investment Diversification: Adding alternative investments like those offered by Scramble can enhance portfolio diversification, potentially reducing overall risk.

- Risk Management Measures: The platform's safeguards, such as co-founder guarantees and first loss capital structures, help mitigate risks associated with lending to small businesses.

- Short-Term Commitment: With loan terms of just 6 months, Scramble provides a relatively short investment horizon, which can be appealing if you're looking for quicker returns or prefer not to lock up your capital for extended periods

In conclusion, Scramble presents a compelling opportunity for investors seeking higher returns and interested in alternative investments.

If you're willing to accept the associated risks and are excited about supporting emerging consumer goods brands, Scramble could be a valuable addition to your investment portfolio.