Karma P2P-crediting Platform

Karma — the decentralized P2P-crediting platform.

Karma creates an ecosystem of convenient P2P-crediting: any client or small business can issue a short-term loan, a social loan with a zero interest rate and settle individual repayment provisions.

2018

Start of the platform in Russia

On December 10, 2018 Karma company. Karma reported that in Russia the platform of p2p-crediting Karma was started.

The platform for cross-border p2p-crediting of Karma began to issue loans to small and medium business. For December, 2018 all transactions are focused on Russia and pass in rubles.

Among the first borrowers of the platform there is a producer of board games of Mosigr. For December, 2018 the company attracted 3 million rubles (the amount was collected in 2 days: in the first day - 1.6 million rubles, in the second - 1.4 million) with profitability for investors in 21% for scaling of retail network (from 74 to 189 shops to the middle of 2022), production upgrades and so forth.

The platform of p2p-crediting Karma is the ecosystem connecting borrowers (business) and investors from around the world (peer-to-peer/p2p - "equal to equal"). The entrepreneur undergoes verification then can create the offer for the investment attraction (loan).

The platform assumes attraction of financial resources by business by the principle of a kraudlending - i.e. not from one, and from a number of investors. The borrower specifies the conditions in the offer, and the investor selects - to agree with them or not.

Main advantage of a kraudlending for entrepreneurs in comparison with bank loans is that private investors much more flexible in decision making. For December, 2018 banks are strongly regulated and practically over 3 million rubles do not issue loans without pledge in the form of the real estate for the amounts. The equipment or goods often are not accepted as pledge and if are accepted, then with very big discount. For private investors the high interest rate and a good financial position of the borrower can level lack of pledge.

For each step to the participant the reputation rating which is called the Karma is awarded. In case of unfair actions the participant answers not only with money, but also the reputation that he calls into question a possibility of his further actions in an ecosystem. Artem Laptev, founder of Karma

To the middle of 2019 Karma is going to reach operational payback and to carry out transactions for the total amount of $25 million. Until the end of 2019 it is going to implement cross-border crediting which requires implementation of 3 basic functions: accounting of assets in a blockchain, currency insurance and insurance upon a default. Until the end of 2020 creators are going to come not less than for 20 markets in addition to Russia.

According to representatives of the company, for December, 2018 Karma is:

• transgranichnost: investors from the countries with "cheap" money and negative interest rates will be able to issue loans to entrepreneurs in emerging markets where money costs "much";
• decentralization of roles and solutions: participants of community can act as independent analysts, appraisers and other professionals whose level of competence is displayed in their rating (Karma);
• blockchain: all transactions, transactions and assets register in a blockchain that ensures complete transparency and safety of the platform;
• electronic document management: the borrower and the investor do not need to meet, they can be in different parts of the world;
• smart scoring: each borrower receives personal rating on the basis of scoring model of the platform which will be improved in the future due to machine learning technologies;
• online monitoring of a financial position: the automated algorithms in real time recalculate borrower ratings taking into account the current indicators of their business;
• the credits with pledge and without: conservative investors can select crediting model with pledge with smaller income;
• secondary market of loans: an opportunity to assign a loan at any time will make this tool more attractive to investors and will allow to lower rates for borrowers;
• insurance of currency risks and defaults: investors can not undertake those risks which they do not understand for a certain payment for benefit of the insurer.

Integration with SmartDeal

Karma, the decentralized P2P-crediting platform, announced on November 1, 2018 end of the first transactions with use of the solution SmartDeal for a remote design of mortgage providing. Now clients - individuals and entrepreneurs in Russia can digitize pledge in the form of the real estate and receive necessary registration in Rosreestr, without leaving the house.

The SmartDeal platform provides a possibility of remote registration of transactions in Rosreestr that simplifies interaction between participants of the platform. Now clients can register mortgage providing transactions for term up to three days. Having completed a stage of integration of two platforms, developers carried out the first transactions with digital registration of a mortgage in October, 2018.

Creation of a business ecosystem with high level of confidence based on a blockchain is impossible without automation of the key processes which are the cornerstone of crediting — Artem Laptev, the CEO of Karma told. — Online registration of the real estate — one of them, and we are glad that the SmartDeal platform helps us to solve this problem and to increase quality of service for our clients in Russia. Earlier we used other digital service, but passed to SmartDeal because of the advanced client support and technological effectiveness.

According to the results of successful carrying out the first transactions of Karma is going to scale use of the SmartDeal platform.

Features of the platform and types of loans

For November, 2018 among features of the Karma platform:

• Absence of intermediaries on behalf of banks.
• Blockchain for maintaining the register of transactions, accounting of assets and storage of reputation. Smart scoring and electronic document management.
• Security: all transactions have 100% legal force for both parties even if they from the different countries. The redemption of default loans is guaranteed.
• Simple interfaces, personal account, mobile application and electronic document management do interactions of investors and borrowers convenient.

The types of loans available on Karma:

• Loans with a complete mortgage covering
• Loans with a partial mortgage covering
• Loans without mortgage covering

Pledge types: The residential real estate in Moscow: Commercial real estate in Moscow; Vehicles.