PragmaGO has completed the acquisition of a majority stake in Telecredit IFN S.A. (Omnicredit), a Romanian fintech specialising in digital financial solutions for the SME sector. The acquisition of 89% of the shares of the Bucharest based company was financed through a capital increase. This is a key moment in the implementation of PragmaGO's international expansion strategy to enter more markets in Central and Eastern Europe and Western Europe in the coming years.
Omnicredit is a leading player in the Romanian fintech market, specialising in financing small and medium-sized enterprises, mainly through factoring services. In the first half of 2024, the company generated revenues of EUR 1.5 million and a net profit of EUR 0.5 million. At the end of June, its balance sheet total exceeded EUR 8,6 million, of which 95% was accounted for by its receivables portfolio, and its equity exceeded EUR 1.8 million.
The acquisition of Omnicredit is an important step in the implementation of our international development strategy. We plan to significantly increase the scale of the company's operations within its current offering. At the same time, it will be a platform for introducing our innovative B2B embedded finance services to the Romanian market
- said Vjaceslav Lypko, Head of International Expansion PragmaGO.
Embedded finance for businesses, such as Merchant Cash Advance and BNPL, are flexible finance solutions tailored to the real needs of business owners. They are integrated into partner systems. This means that entrepreneurs can intuitively raise money for their business directly in the environment in which they operate - such as e-commerce platforms, POS terminals or invoicing systems.
PragmaGO also plans to leverage its experience in digital factoring by implementing in Omnicredit solutions already proven in the Polish market, both in terms of user experience and credit risk management.
As the second largest market in Central and Eastern Europe in terms of population and retail volume (EUR 54 billion), Romania is a key growth direction for PragmaGO. The booming e-commerce market, generating EUR 6 billion annually, creates promising conditions for growth, especially in embedded finance.
Omnicredit will become the leading provider of financing to the SME sector in Romania. The aim is to close the financing 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, having invested EUR 2.3 billion in 157 companies and exited 140 companies.
