PragmaGO has finalized the acquisition of a majority stake in Telecredit IFN S.A. (Omnicredit), a Romanian fintech company specializing in digital financial solutions for the SME sector. Funds for the purchase of 89% of the company’s shares, which is based in Bucharest, came from a capital increase. This is a key moment for PragmaGO’s international expansion strategy, which plans to enter other markets in Central and Eastern as well as Western Europe in the coming years.
Omnicredit is a leading player in the Romanian fintech market, specializing in financing small and medium-sized enterprises, mainly through factoring services. In the first half of 2024, the company achieved revenues of PLN 6.5 million and a net profit of PLN 2.4 million. By the end of June, the balance sheet total exceeded PLN 37 million, of which 95% was the portfolio of receivables, and equity – more than PLN 8 million.
Taking over Omnicredit is a significant step for us in the implementation of our international development strategy. We plan to significantly increase the scale of the company’s operations within the current offer. At the same time, it will be a platform for introducing our innovative embedded finance B2B services to the Romanian market – emphasizes Vjaceslav Lypko, Director for International Expansion of PragmaGO.
Embedded finance for businesses, such as Merchant Cash Advance and BNPL, are flexible financial solutions tailored to the real needs of entrepreneurs. They are integrated with partner systems. This means that entrepreneurs can intuitively raise money for their activities directly in the environment in which they operate – for example, on e-commerce platforms, POS terminals or invoice systems.
Romania, thanks to the high availability of data, offers considerable possibilities in the area of risk assessment automation, which is key in the implementation of embedded finance. In their case, the credit decision is issued even in a few seconds, which means quick access to money, without unnecessary formalities and visits to financial institutions.
PragmaGO also plans to use its experience in digital factoring, implementing Omnicredit proven Polish market solutions – both in terms of User Experience and credit risk management.
Romania, as the second largest market in Central and Eastern Europe in terms of population and size of retail trade (54 billion euros), is a key direction for development for PragmaGO. The dynamically developing e-commerce market, generating 6 billion euros annually, creates promising conditions for growth – especially in the field of embedded finance.
Omnicredit aims to become a leading provider of financing for the SME sector in Romania. The goal is to fill the financial gap in this sector and provide working capital to companies that do not find suitable offers in the traditional banking sector.
PragmaGO’s expansion is supported by its majority shareholder, Enterprise Investors – the most experienced private equity fund in Central and Eastern Europe, which has invested more than 2 billion euros in 155 companies in the last 30 years.
Source: https://managerplus.pl/pragmago-finalizuje-przejecie-rumunskiego-omnicredit-38846
