PragmaGO has purchased a majority stake in Telecredit IFN S.A. (Omnicredit), a Romanian fintech that develops digital financial products for the SME sector. This purchase marks the beginning of PragmaGO’s planned strategy of expansion and growth. The company aims to enter several markets over the next three years, both in the CEE region and in Western Europe.
Omnicredit specializes in digital factoring. The company has been growing dynamically for several years, increasing both its customer base and turnover. It’s effectively managed and profitable – last year it achieved a net profit of EUR 354,000 with a turnover of EUR 40 million (+40% YoY). At the end of 2023, the portfolio of receivables amounted to EUR 6.4 million (+54% YoY). In the first half of this year, Omnicredit reached a turnover of EUR 28.5 million, thus achieving a growth of 90% YoY. Its portfolio of receivables has increased to EUR 8.2 million.
“In our opinion, Omnicredit is a reliable strategic partner. The company shares our target customer profile and like us, develops its financial services based on digitized processes and possesses strong knowledge in the area of operational and credit risk. We see this as a strong starting point for rapid portfolio expansion and growth,” says Jacek Obrocki, Vice President of PragmaGO.
Omnicredit has a non-banking financial institution license (IFN) and is regulated by the Romanian National Bank. The company maintains high standards of credit risk management and financial reporting due to its expert risk cost estimation model.
“We agree with the experienced team at Omnicredit in terms of the direction of further development, and we will work closely together to realise it,” says Tomasz Boduszek, CEO of PragmaGO.
Romania is the second largest market in Central and Eastern Europe in terms of population size and retail trade value (worth 54 billion euros). The Romanian e-commerce market represents 10% of total trade and achieves 6 billion euros of turnover per year.
Telecredit has been supporting Romanian entrepreneurs since launching the ‘Omnicredit’ platform in 2019. Since then, it has provided the SME sector with financing amounting to a total of 145 million euros in the form of factoring and micro loans.
PragmaGO’s expansion strategy is supported by its majority shareholder, Enterprise Investors. They are the most experienced private equity fund in the Central and Eastern Europe region, having invested over 2 billion euros in 155 companies over the past 30 years. PragmaGO plans to continue its foreign expansion and is systematically analysing fintechs that perform well in the CEE region.
Source: https://managerplus.pl/pragmago-przejmuje-wiekszosciowe-udzialy-w-rumunskim-fintechu-omnicredit-77547
