Eleving Group has announced unaudited results for the full year of 2023. The Company has provided the following operational and financial information:
At the end of 2023, Eleving Group recorded €77.2 million in earnings before interest, taxes, depreciation, and amortization (EBITDA) and €191.1 million in revenues. The company recorded a balanced revenue stream from all three core business lines. Flexible lease and subscription-based products contributed €50.4 million to the 2023 revenues, a slight decrease of 2%. Traditional lease and leaseback products contributed €68 million to the revenue stream, up by 7% compared to the respective period a year ago. Revenues from the consumer loan segment contributed €72.7 million to the 2023 revenues, a significant leap of over 20%.
The company’s adjusted EBITDA in the respective period reached €77.2 million, compared to €63.9 million a year ago, while adjusted net profit before FX amounted to €29.8 million, an increase of €7.8 million compared to the respective period in 2023. The company increased its net portfolio to €320.2 million as of the end of 2023.
The Baltic business represents 17% of the company’s total net portfolio, or slightly over €54 million. In terms of volumes, the Lithuanian portfolio accounts for the largest share of the Baltic countries, followed by the Latvian portfolio and the Estonian portfolio.
“Despite the uncertainty in the global economy, demand for consumer credit products has not weakened, and people's ability to pay is still higher than expected in a period of rising interest rates and inflation. In the vehicle financing segment, after a slightly slower start early in 2023, we recovered the dynamics in the second half. This mixed trend was, however, to be expected, as people temporarily postponed large purchases. In 2023, we successfully addressed the diversification of our funding structure by unlocking numerous additional financing channels like local impact funds, bank investments, local notes, and the latest bond issue that attracted €50 million and onboarded over 2 000 new investors mainly from the Baltics. Also, we continue to maintain lean operations and strong cost discipline. Together with the increasing digitization of our daily processes, we have managed to maintain a very cost-effective business even in an inflationary environment. Going forward, we want to maintain organic growth in our 16 markets, with more accelerated growth in markets acquired in mid-2023 are also open to exploring opportunities through new products and market launches or acquisitions. Having a well-diversified debt stack in place with no significant maturities upcoming in 2024, our focus will be on potential equity raising, exploring opportunities both in Baltic markets and outside”
In 2023, Eleving Group raised USD 7 million from the Verdant Capital Hybrid Fund for the Kenyan portfolio growth. In addition, the company successfully continued the local note program, and through which it raised more than €13 million for business development in Kenya. Furthermore, in 2023, the foundations were laid for cooperation with ACP Credit, Central Europe’s leading provider of financing solutions for middle-market businesses. As a result, in early 2024, Mogo Romania received an investment of €10 million, making it the first time in the company’s history that a significant external funding partner outside the Mintos was brought to Mogo Romania. In addition, to develop Eleving Group’s electric car-sharing service and expand its fleet, €2.8 million was raised from Industra Bank.
About Eleving Group
Eleving Group was founded in Latvia in 2012 and joined the Mintos marketplace in 2015, initially offering credit investments from Latvia. Since then, it has placed loans from 15 countries (16 markets) in the Baltics as well as Central, Eastern and Southeastern Europe on the marketplace. The markets also include the Caucasus and Central Asia as well as East Africa. To date, the company has issued loans worth over €1.6 billion and has a net loan portfolio of over €320.2 million.
Some of the equity investors in Eleving Group and Mintos overlap.
