PragmaGO continues to grow dynamically in 2024. In the third quarter, the company grew by 26% year-on-year, strengthening its position as a leader in the B2B embedded finance sector and implementing its announced strategy of foreign expansion by entering the Romanian market.
PragmaGO’s results in the third quarter of 2024:
· The value of financed receivables amounted to 647 million PLN (+26% YoY).
· Factoring generated 512 million PLN, increasing by 21% YoY.
· Embedded Finance resulted in 135 million PLN in sales, indicating a 51% YoY increase.
· The number of companies using the financing was 11,596 (+27% YoY).
In the first three quarters of 2024, the company financed 1.8 billion PLN, an increase of 26% YoY. PragmaGO services were used by 17,374 (+22%) entrepreneurs.
Tomasz Boduszek, CEO of PragmaGO, states that the third quarter of this year was crucial – the Company took over a majority stake in Romanian fintech Telecredit IFN S.A. (Omnicredit), which was the first step of their expansion into the Central and Eastern European (CEE) and Western European markets. The company plans to extend Omnicredit’s offer with its key embedded finance B2B products, Merchant Cash Advance and deferred payments, strengthening its position as a leader in Eastern Europe. In Poland, more and more large companies involved in B2B sales and services recognize the need to support their clients in accessing capital for business activities and corporate purchases. New partners have implemented PragmaGo services in the third quarter, including Przelewy24, Tpay, Moya (Anwim S.A.) and WeNet.
In terms of Merchant Cash Advance, an entrepreneur receives funds for business development where he operates – for example in the panel of a credit card operator’s customer. The financing limit is calculated based on transaction data on the terminal. Repayment can be taken as a percentage of daily transaction revenues, allowing for adaptation to the seasonality of sales. Financing amounts reach up to 150,000 PLN and the decision to grant funds takes only 90 seconds, fully online. In the third quarter, 1,723 customers (+57% YoY) used the service, raising 74 million PLN (+95% YoY).
Factoring is a service offered in the PragmaGO portfolio for many years, and yet this product is still growing at a rate of 21% YoY. In the third quarter, 1,252 companies financed 512 million PLN of receivables as part of factoring. In digital factoring (submitting an application and adjusting cooperation conditions online), the company financed 278 million PLN – a value 30% higher than in the same period of the previous year. Traditional factoring grew by 11%.
In the third quarter of 2024, the company also had very good results in the Catalyst market. PragmaGO closed subscriptions for two bond issues in Polish zloty – both with a reduction above 60%. At the end of September 2024, PragmaGO has issued 33 bond series worth a nominal 550.8 million PLN and one series of bonds in euro worth 3.5 million EUR. The company has raised a total of 65 million PLN from the Catalyst market. All series have been fully subscribed. The total amount of PragmaGO SA’s bond debt currently amounts to 260.8 million PLN and 3.5 million EUR. PragmaGO S.A. has paid its bond investors more than 78.0 million PLN in interest and premiums.
Source: https://managerplus.pl/pragmago-z-dynamika-wzrostu-na-poziomie-26-r-r-w-3q24-43331
