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PragmaGO enters the market in Romania

Friday 20 September 2024 14:11 CET | News

PragmaGO, an SME financing in Central and Eastern Europe (CEE) provider has started its international expansion by entering the Romanian market.  

 

According to the press release, this move comes through the acquisition of an 89% stake in TELECREDIT IFN SA, which operates under the Omnicredit brand, from investment firm Reconstruction Capital II Limited (RC2) and Telecredit's CEO. The initial deal is valued at EUR 5.785 million, with an additional earn-out of up to EUR 0.445 million. The transaction is pending approval from foreign investment authorities in Romania, RC2 shareholders, and other conditions. 


PragmaGO offers financing solutions to SMEs, including factoring and loans, primarily through Embedded Finance services such as BNPL and Merchant Cash Advance. These services are integrated into partner ecosystems like marketplaces, featuring scalability and automated risk management.  

 

PragmaGO, an SME financing in Central and Eastern Europe (CEE) provider has started its international expansion by entering the Romanian market.

 

In 2023, PragmaGO's portfolio reached over EUR 70 million, serving 17,000 clients in Poland—a 25% year-over-year increase. Over the past three years, the company has tripled in size. By mid-2023, PragmaGO's turnover had grown by 25% year-on-year to PLN 1.15 billion. Romania, with significant growth potential in SME financing, marks the first step in PragmaGO's European expansion, with plans to enter multiple Eastern and Western European markets over the next three years. 

Commenting on the acquisition, officials from PragmaGO  highlighted Omnicredit and PragmaGO  shared focus on digitalisation, automation, and risk management expertise. Together, they aim to rapidly grow their customer base and expand their portfolios in Romania. 

About PragmaGO 

PragmaGO is a player in the B2B Embedded Finance sector within the Central and Eastern European (CEE) region, achieving a turnover of EUR 109 million in 2023. The company boasts a strong balance sheet, with assets exceeding EUR 75 million and over EUR 25 million in equity. PragmaGO has access to both private and public debt markets and relationships with major financial institutions.  

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Keywords: acquisition, embedded finance, SMEs, financing , expansion
Categories: Banking & Fintech
Companies: PragmaGO
Countries: Romania
This article is part of category

Banking & Fintech

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PragmaGO

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