More than 1,000 people have registered to become investors

Peer-to-peer financing in excess of AED 5 million arranged for over 15 SME businesses

Sharia compliant structure opens up the platform for Islamic investors

Dubai, 4 April 2015: Beehive, the UAE's leading online marketplace for peer-to-peer finance announced it has reached a critical milestone where over 1,000 people have registered to become investors since its official launch in November 2014. This represents an average month-on-month growth of 20% in registration numbers since the company's inception and serves as testament to the company's ability to resonate in the market.

The platform registered investors from a variety of different nationalities including Arab, British, Indian, South African, Dutch, Pakistani and Australian. What unites all is the desire for higher returns, paid out monthly, and in a more diversified direct investment into SME businesses.

The Beehive investor community has successfully provided funding in excess of AED 5 million to more than 15 businesses, with average investor returns of over 13% APR. Funded businesses span all sectors of industry including IT Services, Food Wholesalers, Management Consulting and Manufacturers. The number of individual investor bids on the Beehive platform also showed 30% growth between each auction, signaling rapidly increased activity and engagement by investors on the platform.

Beehive's novel peer-to-peer finance technology, based on established crowd-funding principles, reduces operating costs and streamlines processes compared to conventional finance routes. The platform enables investors to earn returns from 8% APR to 20% APR on medium term "Business Financing" of up to 36 months and from 0.75% flat rate to 1.5% flat rate per month on short term "Invoice Financing" for up to 4 months while diversifying their risk across many businesses on the marketplace.

"Peer-to-peer finance is a great concept and investing on Beehive has allowed me to earn attractive returns compared to conventional investment channels while allowing me to have full control of my investments and establish a more diversified portfolio in terms of investment type and risk. It also feels good knowing that I am supporting SME growth in the UAE with my investments." Patrick Rogers, Beehive Investor.

The peer-to-peer financing industry marked its 10th year of business in March 2015, with global P2P lending volumes estimated at almost $9bn in 2014, more than all previous years combined, with forecasts expecting the industry to deliver $1 trillion of financing by 2025.

"Attracting over 1,000 registrations in the first 5 months marks a significant milestone for Beehive and we are excited by the amazing response we have received so far. The growth in the number of investors has been fuelled by achieving impressive investor returns, and a greater appreciation of peer-2-peer finance as well as the recent introduction of our Sharia compliant structure. Beehive will continue to introduce services that help investors maximise their return while supporting SME growth in UAE," said Craig Moore, Founder and CEO at Beehive.

Beehive has worked with prominent Islamic legal advisors and Islamic finance industry experts to develop a structure that complies fully with the principles of Sharia. The structure allows Islamic investors to take full advantage of the opportunities that marketplace finance has to offer while providing complete confidence that their values are respected and adhered to.

Media enquiries
Mohamed Nour
Marketing Manager at Beehive
+971 4 550 6704
 
About Beehive
Launched in November 2014, Beehive has rapidly grown into the UAE's leading online peer-to-peer platform. The brainchild of serial entrepreneur Craig Moore supported by Rick Pudner, former Group CEO of Emirates NBD, Beehive facilitates flexible funding solutions for established SME businesses seeking finance of more than AED 100,000 for up to 3 years.

Individual investors can invest from as little as AED 100 into each business listed on the platform and receive monthly repayments at target rates ranging between 8% APR and 20% APR. Beehive undertakes thorough due diligence on each business listed on the platform and the company facilitates the finance agreement between the business and investors, charging a small percentage fee of the finance amount.

Investors are also able to buy or sell their finance parts to other investors on the platform through Beehive's secondary market, giving investors access to a liquid market place where they can trade finance parts, in a similar manner to a bond market.

Since launch, Beehive received over 1,000 investor registrations who successfully funded over 15 businesses for above AED 5 million. 

About Peer-to-Peer Finance
Peer-to-peer finance, based on crowd-funding principles, enables Beehive to reduce operating costs and streamline processes to minimise the cost and complexity in finance.

Otherwise known as marketplace lending, peer-to-peer finance funded $9bn in loans globally in 2014 and is forecast to deliver $1 trillion by 2025. It is an increasingly popular form of crowdfunding that is changing how SMEs borrow capital and how investors manage risk and return.

© Press Release 2015