Eleving Group, a fintech company with operations across 16 countries, has obtained a €4.75 million loan from Absa Bank to bolster its growth in the Ugandan market. The loan, denominated in Ugandan shillings, is set for a 36-month term, according to the agreement between the two entities.
Modestas Sudnius, CEO of Eleving Group, highlighted the significance of the loan, stating it will propel the company's expansion in Uganda and enhance its funding structure by reducing foreign currency exchange risk and borrowing costs. "This agreement further strengthens our established partnership with Absa Bank, demonstrating their confidence in Eleving Group and serving as a stamp of approval for our successful track record and operations in the country," Sudnius said. He also expressed eagerness to grow the business in Africa and deepen ties with Absa Bank.
Uganda is a key market for Eleving Group, being the fifth largest in terms of portfolio share and the second largest in the African region. It represents 8% of the group's total net loan portfolio as of the end of June 2024, with revenues of €9.6 million and an EBITDA of €4.0 million generated during that six-month period.
The company plans to continue developing its vehicle financing products, particularly focusing on electric mobility. Since May 2024, Eleving Group has financed 750 electric motorcycles in Uganda and is on track to surpass 1000 units by year-end.
Eleving Group, established in Latvia in 2012, serves markets on three continents, promoting financial inclusion and social mobility. The group's portfolio is diverse, with secured vehicle loans and mobility products under the Mogo brand making up about two-thirds, and unsecured consumer finance products comprising the rest. The majority of its portfolio is in Europe (55%), followed by Africa (32%), and the rest of the world (13%).
With a customer base exceeding 1.3 million and a total loan volume surpassing €1.8 billion, Eleving Group is recognized for its rapid growth, having been listed among Europe’s 1000 fastest-growing companies by the Financial Times in 2020 and 2021. The group concluded 2023 with strong financials, including an adjusted EBITDA of €77.5 million, revenue of €189.3 million, and an adjusted net profit of €24.5 million. Its net portfolio reached €320.3 million, leading to an upgrade in its credit rating from B- to B with a stable outlook by Fitch in 2024.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.