Following the IPO, Eleving Group secures EUR 4.75 mln loan from Absa Bank for business development in Uganda
Eleving Group, a Baltic-headquartered fintech company operating in vehicle and consumer financing segments across 16 countries, has secured EUR 4.75 mln in local funding from Absa Bank, one of the largest banks in Africa. The loan will support the further growth of the Group's portfolio in the Ugandan market.
According to the loan agreement, Absa Bank has granted Eleving Group a loan denominated in Ugandan shillings for a period of 36 months.
Modestas Sudnius, CEO of Eleving Group, emphasized that this funding will not only fuel the company’s future growth in Uganda but being issued in a local currency, will also help to diversify the Group’s funding structure, mitigate the foreign currency exchange risks, and further optimize the costs of borrowing.
“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. We look forward to expanding current partnership with Absa Bank as we continue to grow our business in the African region,” adds Modestas Sudnius.
In terms of portfolio share, Uganda is the fifth largest Eleving Group market and second largest in African region, accounting for 8% of the total net loan portfolio as of the end of six months of 2024. Uganda operations in the respective six-month period generated a revenue of EUR 9.6 mln and an EBITDA of EUR 4.0 mln.
In the coming quarters, the company intends to further develop its existing car, motorcycle taxi and electric motorcycle financing products, with an even stronger focus on electric mobility. Since May, when the company started to finance electric motorcycles in Uganda, it has already funded 750 units and is aiming to reach over 1000 units by the end of the year.
About Eleving Group
Eleving Group has driven innovation in financial technology around the world since its foundation in Latvia in 2012. As of today, the group operates in 16 markets and 3 continents, encouraging financial inclusion and upward social mobility in underserved communities around the globe. Eleving Group has developed a multi-brand portfolio for its vehicle and consumer finance business lines, with around 2/3 of the portfolio comprising secured vehicle loans and mobility products, with Mogo as the leading brand, and around 1/3 of the portfolio including unsecured consumer finance products. Currently, 55% of the group's portfolio is located in Europe, 32% in Africa, and 13% in the rest of the world.
The Group's historical customer base exceeds 1.3 million customers worldwide, while the total volume of loans issued goes beyond EUR 1.8 billion. With headquarters in Latvia, Lithuania, and Estonia and a governance structure in Luxembourg, the Group ensures efficient and transparent business management, powered at the operational level by over 2800 employees. For two consecutive years, the Group was listed among Europe’s 1000 fastest-growing companies, as published by the Financial Times in 2020 and 2021.
The Group closed 2023 with strong financial results—its adjusted EBITDA stood at EUR 77.5 million, revenue at EUR 189.3 million, and adjusted net profit at EUR 24.5 million. Eleving Group’s net portfolio reached EUR 320.3 million. In 2024, Fitch, a leading credit rating agency, upgraded Eleving Group's rating from B- to B with a stable outlook.
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