Eleving Group has started the process of integrating EC Finance Group Ltd., better known as ExpressCredit, a consumer finance provider operating in the Southern Africa region, into its direct subsidiary AS Eleving Finance. As a result of the transaction, Eleving Group takes over the company’s assets, subsidiaries, and client portfolio and increases Eleving Group’s equity.

According to Modestas Sudnius, CEO of Eleving Group, this has been well considered and strategic decision to expand the company’s operations in the African region. Eleving Group already had a strong presence in Kenya and Uganda, where Group’s core product is vehicle financing, primarily servicing the self-employed and SME segment. With the integration of EC Finance Group, Botswana, Namibia, Lesotho, and Zambia are 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 EUR 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 Africa region,” adds Modestas Sudnius.

ExpressCredit was established in 2017 and mainly provides long-term consumer loans to government employees in the African markets. In the respective consumer financing segment, ExpressCredit is among the industry leaders. The specialty of the business is automated monthly payments, which are either deducted from the customer’s salary or credit card. Due to that, repayment rates are consistently high, and the debt collection process is straightforward. In all markets, the business model is primarily based on an offline model with more than 30 branches across four markets.

Eleving Group is one of the largest fintech players founded in Latvia with a strong presence in 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 EUR 1.35 billion. In 2020 and 2021, Financial Times ranked Eleving Group among the Top 1000 fastest-growing FinTech companies in Europe. In 2Q2023, the Group received an affirmation from Fitch, a Big Three credit rating agency, that its Long-Term Issuer Default Rating (IDR) is at ‘B-,‘ with a Stable Outlook. Fitch has also affirmed Eleving Group’s senior secured debt rating at ‘B-‘ with a Recovery Rating of ‘RR4’.

More information:

Arturs Cakars, Eleving Group Chief Corporate Affairs Officer, arturs.cakars@eleving.com