Mintos swung into profit last year, despite a fall in revenue and challenges from the Ukraine war.

The European lending marketplace reported total income of €188,000 (£163,271) for the year, up from a €2.5m loss in 2021.

“Income was largely the result of stable net commission income as well as other income generated,” Mintos said in its annual report.

However, revenue fell by 5.6 per cent year-on-year to €9.192m.

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“In 2022, we faced obstacles like the war in Ukraine and the complex transition to a regulated set-up under MiFID II,” Mintos said. “Despite these challenges, we reached 500,000 registered users, expanded our regulated services to France, and made progress in overdue amounts from suspended lending companies.”

In February 2022, Mintos stopped cooperating with lending companies in Russia as a result of the invasion of Ukraine. The impact of the war, and subsequent sanctions, led to an 18 per cent drop in monthly revenue, Mintos said.

Read more: Mintos recovers €10m from Russian lenders

“To recover investors’ funds, we’ve been working closely with the lending companies and local consultants since the start of the war to identify ways of transferring borrowers’ repayments,” Mintos said. “Towards the end of the year, we started to receive payments from lending companies, and this will continue provided external factors don’t change.”

Mintos transitioned from a loan investment product into loan-backed securities – which it calls notes – after it secured its investment firm and electronic money institution licence in August 2021.

Under its new, regulated structure, Mintos investors are protected by the MiFID II investor protection framework. They also have access to in-depth prospectuses about the notes, giving them increased transparency.

Mintos said it spent the first half of 2022 transforming its business under the new regulatory structure.

It said that it saw slower growth of its investor base last year, as its marketing activities were limited due to regulatory restrictions, but reached the 500,000 milestone nonetheless.

“In 2023 we plan to passport to other EU countries, opening up new opportunities for increasing our customer base and accelerating growth,” Mintos added.

It also plans to start including traditional assets like ETFs on its marketplace next year.

“By transforming Mintos into a multi-asset investment platform, our goal is to become a one-stop solution for passive, long-term investing for investors across Europe,” it said.