Debitum owner Ingus Salmiņš featured in “Dienas Bizness”
“Dienas Bizness”, Latvia’s leading business news outlet, has published an interview with Debitum owner Ingus Salmiņš. We are also publishing a translated version on our website, giving investors an opportunity to get to know Ingus better and learn more about his vision for the platform’s future development.
Original interview in Latvian read HERE.
“Debitum” owner Ingus Salmiņš: investor trust starts with a clear product and a regulated environment
In recent years, the investment platform “Debitum” has become one of the rapidly growing players in business loan financing in Latvia. In a conversation with the owner and manager of the platform Ingus Salmiņš, we have covered investor trust, regulation, financing of forestry and other industries, as well as the platform’s development plans in Europe.
What is “Debitum”, and what does the company do?
“Debitum” is a licensed investment platform in Latvia that connects investors with small and medium-sized companies seeking funding for business development. The principle is simple – companies pursuing financing for development place their loans on the “Debitum” platform, and investors (both private persons and legal entities) can invest their capital in these business loans for a certain period of time and receive back the invested amount along with interest.
It is important to emphasize that these investments have a predetermined fixed interest rate. In recent years, we have observed that some investors are tired of very complex financial products and large stock market fluctuations. People are again interested in understandable investments – a clear term, predictable profitability and real assets behind the investment. Unlike stock market fluctuations, the investor already knows the potential profitability and the term. It is equally essential that the profit of “Debitum” investors is generated from the operations and growth of real companies, for example, in forestry. Our model is based on financing companies with clear and understandable collateral. This means that the investor is aware what is behind the investment: land, forest or other assets/collateral.
Our main idea is the principle of shared growth – companies obtain capital for development, and investors receive predictable income from this growth.
I have been associated with “Debitum” for several years, but now, as the owner, I have decided to involve more actively in the operational development of the platform.
Share a brief overview of your background and what brought you to “Debitum”.
I started my career in the banking sector and developed professional experience in various financing areas for several years, from individuals to corporate and institutional clients. Throughout this time, I managed a financing portfolio of more than 100 million euros. Later, I managed ALTUM State Energy Efficiency Fund of €156 million, which further expanded my expertise in the field of investment and development financing.
I can assert that financing and the investment environment are still my professional passion. Therefore, “Debitum” and the development of platform is a very logical continuation of my previous work.
In a few years, the investment platform you own, “Debitum”, has become one of the largest players in Latvia, rapidly increasing its KPIs. Could you walk us through how you assumed the ownership of the platform, and what was your vision when acquiring this company?
As I mentioned earlier, at some point the logical next step was to think about developing a scalable financing service. Approximately three years ago, my colleague and I began to actively assess the options – to build our own or to purchase an already licensed investment platform. That’s how we came to the opportunity to acquire “Debitum”.
It was crucial to us that the platform was already operating under the regulation of the Bank of Latvia, as this ensured a strong foundation and credibility. At the same time, we noticed that the platform lacked a clear strategic direction and development plan. To some extent, we considered this as an interesting challenge and opportunity to develop the platform with a well-defined strategic focus and long-term vision.
Initially, I worked in the board of the platform and focused more on risk management issues. However, last year I became the sole owner of the company and decided to more actively involve in the daily development and operational processes of the platform. To put it plainly, to get hands-on and dive even deeper. As the head of the platform, I see great potential to develop “Debitum” into one of the leading investment platforms in business loan financing.
How do you assess the development of the platform so far?
When we acquired “Debitum” in the summer of 2023, the platform’s active investment portfolio was around €8 million. Now, in less than three years, we have reached more than €65 million.
At the same time, the company’s revenue has grown from around €350 thousand to more than €2.4 million per year, and the number of investors has exceeded 30 thousand. From my point of view, this demonstrates well, what a great potential regulated investment platforms have in Europe with a clear product and a conservative approach to risk management.
We have also grown significantly in terms of partners. If in 2023 there were three financing partners operating on the platform, now there are six, and we predict that the number of partners will continue to grow during this year.
In turn, the investor base on the platform mainly consists of Western European countries – Germany, France and Spain, and export markets represent the core of our focus, although we also see demand in the Baltics.
In fact, we currently observe a very interesting trend – more and more Western European investor capital is flowing through Latvian platforms into Latvian companies, for example, in forestry and agriculture. Approximately 88% of the assets financed on the “Debitum” platform are currently related directly to Latvian companies.
It matters to me that the platform has remained profitable for the second consecutive year. Last year, “Debitum” reported a profit of approximately €550,000. Previously, we invested significant funds in the development, technology and growth of the platform, which is why the company was incurring losses. Currently, we have created a solid foundation for further development and are ready for the next growth stage.
I know that you have previously built your experience in the banking sector for many years, for example, at “Citadele Banka”, being involved in various financing and investment projects. Many investment platforms have historically focused on real estate development or consumer loans. Why did “Debitum” choose business loan financing, for example, in the forestry sector, as one of its main directions?
I consider forestry to be a relatively stable and predictable industry. If we compare it, for example, with construction, then there are a lot of variables in construction projects – cost fluctuations, delays in deadlines, supply problems, changes in regulations and other factors that significantly affect the final result. In order to successfully implement such projects, very high competence and precise project management are required. In practice we see that some projects face delays or cost increases.
In forestry, however, profits are based on a real and sought-after resource – the forest. The market is active, and forest properties are regularly purchased by both local companies and large international companies. There are clear reasons why the forestry sector is often called one of Latvia’s most strategically important resources – green gold. Those who apply prudent and sustainable management practices tend to achieve solid profitability in the long term.
At the same time, I would like to emphasize that “Debitum” does not cooperate only with the forestry sector. Our main focus is on financing business loans. We select financing partners and sectors very carefully in order to offer investors the most stable and predictable projects with regular repayments. We are interested in sectors that have real economic value and long-term growth potential.
One of the latest examples is “Baltic Terra”, an agricultural land fund in Latvia that relatively recently began raising funding through “Debitum” platform. The company acquires and improves agricultural land, preparing it for effective use.
Agricultural land is a stable and inflation-resistant asset with relatively low volatility. Consequently, the outcome is beneficial for all parties – land resources are used more efficiently, land value and productivity increase, and businesses, farmers, and the state receive higher revenues in the form of taxes.
You have emphasized several times that “Debitum” is a company that is licensed and strictly supervised by the Bank of Latvia. It has been heard that the regulation of the Bank of Latvia is one of the strictest in Europe. Does this fact help to more reliably attract clients in Europe?
Yes, we are MiFID II licensed and supervised by the Bank of Latvia. This means very high requirements regarding risk management, compliance procedures and investor protection.
Of course, such regulation also means significantly higher operational costs compared to unregulated platforms, which often operate abroad, but at the same time actively attract investors in the Baltics and elsewhere in Europe. However, investor safety has always been a priority for us, which is why we take regulation very seriously and see it as a significant advantage in the long term.
I can say that our cooperation with the Bank of Latvia has developed into a very professional and constructive one. It is noticeable that the regulator is establishing a dialogue with the industry and thinking about the sustainable development of the financial market as a whole. This helps to strengthen trust among both local and foreign investors.
Regulation is a very important factor, especially for Western European investors. Investors are increasingly paying attention to whether a platform is licensed, how risks are monitored and how investor funds are protected. Therefore, we believe that in the long term, regulated platforms will be in a significantly stronger position than unregulated market players in terms of investor trust.
In my opinion, Latvia is currently undervalued in Europe, specifically in the field of alternative financing and investment platforms. Hundreds of thousands of investors from all over Europe are already investing through Latvian-regulated platforms.
The last three years have been a very rapid development phase for “Debitum”. What are the plans for the next three years?
In the coming years, the main focus will be on both growth and platform quality and product development.
As I mentioned earlier, one of our goals is to continue diversifying our loan portfolio by attracting new financing partners and developing cooperation with sectors that have high added value and a predictable business environment. As the platform grows, we are able to attract increasingly strong professionals to our team, which is very important for long-term development.
One of the most important tasks this year will be the introduction of new investment products. We are witnessing a shift toward investors valuing greater flexibility and more efficient portfolio management, so we are working on solutions that will give more freedom to diversify investments and to manage liquidity in a more convenient way.
We have also received a lot of positive feedback from investors that “Debitum” platform is simple and easy to use. The platform is also entering its next stage of development – this year, we plan to introduce a refreshed visual identity and enhance the overall user experience. During this time, both our team and our vision for the platform’s future have evolved significantly, and we want the platform itself to reflect that growth through a more modern, intuitive, and cohesive experience.
Of course, platform security will remain one of our highest priorities. Operating in a digital environment and serving investors across many countries requires continuous investment in technology, security solutions, and risk management. Our goal is to ensure a consistently high level of security and reliability for both investors and funding partners.
I believe there is still significant growth potential in Western Europe. Investor interest in alternative investments and financing the real economy continues to increase, and I see strong opportunities for the platform to expand its volume several times over the coming years.
We often say that “Debitum” is not just an investment platform. In fact, we help Western European capital enter the real economy of Latvia and Europe – into companies that provide jobs, export and develop important industries. I believe this is a direction that will become increasingly important in Europe in the coming years.
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