February 3, 2022
AS DelfinGroup takes over the pawn shop business of AS Moda Kapitāls and expands the network of Banknote branches in Latgale
Latvian financial service company AS DelfinGroup has completed the acquisition of the AS Moda Kapitāls pawn shop business, which was started in August 2021. AS Moda Kapitāls owned the fourth largest pawn shop network in Latvia and the acquisition of its business will strengthen the leading position of AS DelfinGroup in regions.
Ivars Lamberts, Member of the Management Board of AS DelfinGroup: “AS Moda Kapitāls was a strong regional player with a wide network of branches, therefore we saw good investment opportunities in the acquisition of the company's pawn shop loan portfolio. We are convinced that the acquisition of the company's pawn shop business will not only strengthen the leading position of AS DelfinGroup in the Latvian pawn shop segment, but will also increase the overall value of the company in the long term. The former customers of AS Moda Kapitāls will eventually benefit, because now they will have access to a broader range of services in more than ninety Banknote branches across Latvia, a rapidly growing online store, mobile application services and remote evaluation of goods. Despite the constraints of the pandemic, the whole transaction of business acquisition was carried out very professionally and within the planned timeframe. After the conclusion of the deal, we have opened a new branch in Daugavpils, while Banknote branches in Ludza and Preiļi moved to better and larger premises.”
It is not necessary to report to the Competition Council on the merger of market participants in relation to the transaction between AS DelfinGroup and AS Moda Kapitāls on the acquisition of the pawn shop business of this company, as the reporting thresholds are not reached.
The aim of AS DelfinGroup’s business is to integrate green thinking and economic profitability. Company actively expands the network of Banknote branches and develops the infrastructure for general public across Latvia to conveniently sell and procure used and inspected goods. Hence these goods are granted a second life and people get a chance to purchase things they need. Banknote pawn shop network has become one of the leading retail channels for used and inspected goods in Latvia helping the population trade various items. Reuse of goods is an effective way of reducing useless consumption and excessive exploitation of natural resources and helping people to save and use their finances more effectively.
AS DelfinGroup continues stable growth and is successfully moving forward to achieve its long-term goals of reaching a loan portfolio of EUR 51 million by the end of 2022 and exceeding the loan portfolio of EUR 70 million by the end of 2024. During 2021 AS DelfinGroup continued rapid growth in the consumer lending segment by issuing 24% more new loans compared to 2020. Significant increase in this segment continued also in the 4th quarter when company issued 23% more new loans compared to the same period in 2020.
About AS DelfinGroup
AS DelfinGroup is a licenced technology-based financial services company that was established in 2009 and operates under the brand names Banknote and VIZIA. The company continuously develops and offers consumer and pawn loans, loans developed for senior citizens, Buy now pay later loans (BNPL loans), as well as sale of pre-owned goods both online and at more than 90 branches across Latvia. On average, 35,000 thousand loans are issued every month and serviced by the professional team of more than 270 AS DelfinGroup employees. The company has a total of over 400,000 registered customers. Since 2014, AS DelfinGroup has been known on the Nasdaq Riga Stock Exchange as a bond issuer and since 2021 as a share issuer on the Baltic Main List. The company’s IPO in 2021 attracted almost 6000 new shareholders. The company regularly pays dividends to its shareholders. In 2020, the company's net loan portfolio grew to EUR 34.6 million, while its EBITDA reached EUR 9.3 million, with profits before income tax for dividends EUR 4.65 million. The company’s sustainability is based on focused corporate governance, fintech innovation, responsible lending, financial inclusion and facilitating the circular economy. The company has been profitable every year since 2010.