According to Eleving Group’s announcement, the company has started the process of integrating EC Finance Group Ltd., better known as ExpressCredit, into its direct subsidiary AS Eleving Finance. ExpressCredit is a consumer finance provider operating in the Southern African region. As a result of the transaction, Eleving Group is taking over ExpressCredit’s assets, subsidiaries, and client portfolio, and is increasing Eleving Group’s equity.
This transaction aims to expand the company’s operations in the African region. Eleving Group already has a strong presence in Kenya and Uganda, where the company’s core product is vehicle financing, primarily servicing the self-employed and SME segment. With the integration of ExpressCredit, Botswana, Namibia, Lesotho, and Zambia are being added to Eleving Group’s portfolio in Africa. Eleving Group plans to continue to offer already established consumer finance services in the new markets and implement new products.
"As part of the deal, we have taken over a net portfolio of €28 million split across four markets, representing approximately 10% of our existing portfolio and more than 30 branches. We intend to develop the obtained business further, launch new products, and utilize operational and financing synergies – improving the overall efficiency of the business. This is an important milestone in further growth of Eleving Group, strengthening its presence in the Africa region."
ExpressCredit was established in 2017 and mainly provides long-term consumer loans to government employees in the African markets. The company’s specialty is automated monthly payments, which are either deducted from the customer’s salary or credit card. Because of this method, repayment rates are consistently high, and the debt collection process is straightforward.
Eleving Group was founded in Latvia and has 16 global markets across three continents. The company has a historical client base of over 500 000 clients worldwide, and the total volume of loans issued exceeds €1.35 billion. In 2020 and 2021, the Financial Times ranked Eleving company among Europe’s Top 1 000 fastest-growing fintech companies. In Q2 2023, the company received a B- grade from Fitch.
Mintos investors
Please note that Mintos investors are not impacted by the Notes backed by loans of Eleving Group, nor will ExpressCredit change in any way due to this transaction. Moreover, Eleving Group (Luxemburg) will provide the corporate guarantee for the liabilities of ExpressCredit Botswana in the Notes setup, and Zambia’s exposure toward investors will continue to be paid according to the previously agreed schedule.
Additionally, Eleving Group is organizing a Q&A session for Mintos investors. Please submit your questions by 26 July 2023 via email to [email protected], with the subject “Questions for Q&A session.” Eleving Group will choose the 10 most popular questions, and the CFO and CEO will record a video with answers.
About Eleving Group
Eleving Group was founded in 2012 in Latvia and joined the Mintos marketplace in 2015, originally offering loans for investment from Latvia. Since then, it has placed loans on the marketplace from 15 countries in the Baltics and Central, Eastern, and South-Eastern Europe. Operating regions also include the Caucasus and Central Asia, as well as Eastern Africa. To date, the company has issued over €1.35 billion in loans and has a net loan portfolio of almost €290 million.
Some equity investors of Eleving Group and Mintos overlap.
