Debex is an electronic trading platform for the sale and purchase of debts of individuals. On this site, banks, microfinance organizations and professional collectors of overdue debts put up debt registers for sale. Debex was founded in 2019 by CarPrice co-founders Alexander Danilov, Ivan Korotaev and Oleg Zankov.
History
2022: Service for self-determination of receivables
Debex on December 15, 2022 announced the launch of a service that determines the potential value of the sale of receivables. The service will also be useful for determining the amount of debt reservation in accounting if the seller does not plan to sell it.
The service allows you to understand in what price range the debt is. As of December 2022, these are four ranges ("0 to 10%" of the amount of debt; "10% to 40%"; "from 40% to 70%" and "above 70%"), however, as the model is supplemented with data, the number of price ranges will increase. If debt is sold on Debex, the online auction will be launched with the minimum price of the price range to which the debt was attributed.
 | The annual volume of receivables "delay" in Russia is approaching 4 trillion rubles and continues to grow. Supply chain gaps caused by the current crisis will invariably entail new debts that reduce working capital and worsen the financial situation of companies. Debt sales are a recognized tool for restoring liquidity, but in Russia the main problem in the development of this market has always been the difficulty of determining the value of debt. We have built a mechanism for determining the market price of "receivables," based on the results of a large number of trades on it at various sites. I think this can give a significant contribution to solving the problem and, as a result, will allow to return the "hung" money in the form of debt to the economy, - said Sasha Danilov, CEO of Debex. |  |
The basis of the service is a mathematical model based on real prices offered by buyers at various sites. In addition, the model in online mode is supplemented by analytics about debtors presented by the Rescore service. The system analyzes dozens of parameters of each debt, such as its size, period of delay, financial condition of the debtor, the presence of encumbrances or pledges, legal burden, the presence of open enforcement proceedings against the debtor, tax data, procurement information, the existence of fresh messages about the creditor's intention to apply for bankruptcy, the likelihood of bankruptcy of the debtor and much more. All data are processed by a neural network, as a result, the model's accuracy according to retro data is about 95%.
| | When selling, two cases that are the same in terms of debt can cost differently. In the first case, let's say the debtor is declared bankrupt, and the price of such a debt does not exceed several percent of its amount. And in the second, the debtor is a functioning company with many assets - such debt can be sold at a price close to par. Our system analyzes many parameters in their relationship, obtaining the necessary information in various sources and already accurately predicts the potential cost of debt. When selling at the auction, you will have an understandable justification for the price, or an authoritative estimate to form a reserve. Reserving or selling debt at a discount is always a loss-taking. For directors of companies, this is not easy, but it is important to understand that today more can be obtained for debt than tomorrow. We are glad that we can offer the business community a fairly accurate and innovative tool for working with receivables, - adds Sasha Danilov. | |
2021
Launch of Pan-Asian Branch
On November 24, 2021, Debex, an online auction for overdue debt, launched a pan-Asian branch of Debex.Asia. The company will be headquartered in the Philippines. The site will work with professional players in the debt market of India, Vietnam, the Philippines, Indonesia, Malaysia and Singapore.
By the end of the year, the company plans to hold at least five successful trades in the region, and in 2022 - about thirty.
| | In September 2021, we opened a representative office in the Philippines and immediately sold a record debt portfolio by local standards for a total amount of about $70 million. News in Asia is spreading very quickly, so banks, MFIs and collectors from other countries began to contact our Filipino colleagues with a request to organize auctions. The Asian lending market is rapidly developing, as a result of this - the volume of bad debts is growing. The organization of debt trading platforms in each country is not always justified, because local debt markets are in different stages of development. By creating a single regional platform for selling debts, we could serve a region with a population of about 2 billion people and almost unlimited opportunities for growth, "said Sasha Danilov, CEO of Debex. | |
The key quality of Debex is the fast, profitable and comfortable sale of debt registers exhibited by banks and other financial institutions. Buyers are collection agencies; before the start of trading, they can get acquainted with the lot in detail in order to assess how it fits the agency's profile. The bidding itself lasts one hour, the buyer who will offer the maximum price wins.
According to McKinsey estimates, the Asian banking sector is the fastest growing in the world. As of November 2021, more than 40 of the world's 100 largest banks in terms of assets are Asian, accounting for approximately 50% of the market capitalization of the world's 100 largest banks. As the middle class and household incomes grow, personal financial assets in the region will total $69 trillion by 2025, roughly three-quarters of the global total.
Today, in addition to Russia, Debex operates in five countries (USA, Spain, Mexico, Philippines, Kazakhstan), soon - exit to Poland. The company plans to receive at least 25% of revenue from international business by the end of 2021.
Debex, International Online Auction for Late Debt, Starts in Southeast Asia
Debex, an online auction allowing legal entities to sell and buy overdue debt, entered into operations in the Philippines in June 2021. The first lot sold was Robocash's debt portfolio with a total debt of 1.7 billion pesos.
| | "The overdue debt market in the Philippines is just beginning its development: despite the regular increase in the level of debt burden of the population, the number of professional debt buyers is small, and the legislative framework is only at the formation stage. But despite this, we are confident that in the next 3-5 years the market will show a sharp increase. Debex could become a market standard and a key company selling overdue debt in the region. The format of the online auction, where you can quickly and transparently sell or buy debts, is interesting to both local banks and collectors. For the first time, collectors can buy portfolios that 100% meet their profile and key criteria, which, of course, increases the liquidity of the entire array of debt registers with which the collector works. By the end of the year, we plan to hold about 15 auctions with a total debt of up to $300 million, "says Sasha Danilov, CEO of Debex. | |
According to Debex, the total volume of the overdue debt market in the country is about $4 billion, while its growth is 20-30% per year.
In addition to Russia, Debex operates in four countries (USA, Spain, Mexico, Philippines). The company plans to receive at least 25% of revenue from international business by the end of 2021.
2020
Launch of the Debexpert.com platform in Spain
On October 19, 2020, Debex, an online auction that allows legal entities to sell and buy overdue debt, announced the start of operations in Spain. The first lot sold was Prestamer's debt portfolio.
| | The Spanish market for overdue debt obligations looks extremely attractive: with a high volume of sold debt registers, the volume of online sales in this country is still quite low. By the end of 2020, we will hold 8-10 auctions, and in 2021 we plan to take a significant share in all key business indicators. The format of the online auction, where you can quickly and transparently sell or buy debts, is interesting to both local banks and collectors. For the first time, collectors can buy portfolios that 100% correspond to their profile and geography, which, of course, increases the liquidity of the entire array of debt registers with which the collector works, says Sasha Danilov, CEO of Debex. | |
According to the data of the Bank of Spain in 2019, the total book value of overdue loans sold amounted to 22 billion euros. According to Debex, the expected sales volumes of debt registers in the next few years will be about 30 billion euros per year at the book value of the debt and about 2 billion euros at the sale price of the portfolios themselves.
The key advantage of Debex is the fast, profitable and comfortable sale of debt registers exhibited by banks and other financial institutions. Buyers are collection agencies; before the start of trading, they can get acquainted with the lot in detail in order to assess how it fits the agency's profile. The bidding itself lasts one hour, the buyer who will offer the maximum price wins.
| | The popularity of online sales of debt registers is primarily associated with the high speed and transparency of each transaction. Now it is not necessary for the seller to independently look for a buyer, combine debts into large portfolios in order to reduce labor costs, and negotiate that may drag on. We sold the portfolio immediately at the first auction, - comments Maxim Kalinin, executive director of Prestamer. | |
Launch of the Debexpert.com platform in the USA
On August 26, 2020, Debex, an online auction that allows legal entities to sell and buy overdue debt, announced the launch of the Debexpert.com platform in the United States. The first bidding on the site is expected in November 2020.
| | Debex dominates online debt sales in Russia. In fact, this is a whole ecosystem of services aimed at quickly and conveniently selling and buying cessions. It is important for us that everything works perfectly in the largest world debt market, therefore, before entering the United States, we conduct a comprehensive check of all the parameters of the site, and also finalize the service taking into account the needs of local customers. With huge volumes of transactions, the American market is in the "pre-digital" stage. Many services that we consider already standard are not available in the United States. Therefore, our company has every chance of taking a noticeable market share there, "said Sasha Danilov, CEO of Debex. | |
A key feature of Debex is the speed of buying and selling debts by automating the transaction process. Buyers before the start of trading can get acquainted with the debt portfolio in detail in order to assess how it fits the profile of the company. Customers of the service see all the information about the lot, can communicate with each other, as well as exchange files. Bidding lasts 60 minutes, the buyer who offers the maximum price wins. Debex at the same time ensures the security of each transaction: all sellers and buyers undergo strict control, excluding any violations.
The online auction allows buyers to purchase lots that 100% correspond to the company's profile and the geography they need, which, of course, increases the liquidity of the buyer's entire debt portfolio. In addition, at the auction, the collector can quickly sell the part of the portfolio that, for some reason, is not relevant to him, Debex explained.
According to various estimates, the volume of overdue debt sold annually in the consumer lending segment USA ranges from 120 to 150 billion. dollars According to this indicator, the American market is the largest in the world, the company noted. The total amount of transactions for the sale of debts made on the market for 2019 amounted to $4 billion. Sales of bad debt portfolios are expected to multiply in 2020 and 2021.
| | "In many countries, including the United States, the market for selling" bad "debts enters the digital transformation much later than others. Our task is to completely change the transaction process, making it faster, simpler and more transparent. For this reason, we feel a huge interest in our product in many countries of the world. The company is already preparing to work in Spain, in the coming months we will begin work in Kazakhstan. Preparation for the shipment of the product in the United States enters the final stage. I hope we can give the participants of this market a tool that has been waiting for a long time, "said Dmitry Shushkin, IT expert, co-founder of Debex. | |
Debex raised funds from Investment Holding Avenir
On June 3, 2020, Debex, an online auction for the sale of overdue debt, announced the attraction of funds from the Investment Holding Avenir. The investment round was closed on May 29, 2020, the deal took place at the United Investors site. The size of investments and the received shares of participants are not disclosed. The funds raised will be used to launch new products of the company, as well as for international expansion.
| | "As of June 2020, more than two-thirds of Russian online debt auctions are held at Debex. When global debt markets return to their usual work, and interest in digital business tools that allow you to work faster and more efficiently increases, it's time to apply Russian experience at the international level. The investment of Avenir Holding will allow us to quickly start working outside our country. First of all, we are interested in countries with a high level of overdue debt among the population, a significant volume of operations and a low competitive environment, " noted Sasha Danilov, CEO of Debex | |
Debex operates in the format of an online auction, in which banks, microfinance organizations and late debt collectors put up debt registers for sale. Since the beginning of its activities in August 2019, the company has held 61 auctions for a total debt of about 23 billion rubles. According to Debex, as of June 2020, 58 Russian financial organizations, as well as 195 collection agencies of the country, work with the site.
| | "Debex is a product with benefits for all participants in the chain: both for debt sellers, for whom collection is a resource-intensive process and not always specialized, and for collectors. The service organizes the search for the parties to the transaction, regardless of their location, conducts an auction and charges a reward. Over the year of its existence, Debex has signed partnership agreements with many banks and with almost all collection agencies. We believe that investments in model refinement scoring neural network and joint products with partners will help the project approve its position, " noted Olga Masyutina, CEO and Co-Founder of Investment Holding Avenir | |
Abbyy CEO in Russia Dmitry Shushkin became a shareholder of Debex
On April 20, 2020, it became known that Abbyy CEO in Russia Dmitry Shushkin became a Debex shareholder. Rusbase was told about this in the press service of the service.
Dmitry Shushkin called Debex the most dynamic and technological project in the overdue debt market, which can increase the pace of development of the domestic debt market, as well as go beyond it.
| | In less than a year, this platform has reoriented the format of work with debt registers of many large banks, financial organizations and collection agencies that has developed over the years, proving that the future of the industry lies with modern technologies. Today, having shown excellent results of work in our country, the company is ready to enter other markets, primarily European, where the volume of debt sales is tens of times higher than Russian indicators, "he said. | |
According to the head of Debex, Alexander Danilov, the experience of the investor and entrepreneur, which Dmitry Shushkin has, will allow the company to develop faster.
By April 20, 2020, a total of 58 auctions were held at Debex for a total debt of 21.6 billion rubles. 52 financial organizations, as well as 193 collection agencies, work with the site.
By the end of 2020, Debex expects to occupy up to 50% of the Russian overdue debt market sold via the Internet, as well as launch a business outside the Russian Federation.[1]
Notes
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