PragmaGO to Expand B2B Embedded Finance Services After Omnicredit Acquisition

Polish FinTech PragmaGO has completed its acquisition of Romanian FinTech Telecredit IFN (Omnicredit), saying this move will help the company enter more markets in Central, Eastern and Western Europe in the coming years.

This acquisition adds Omnicredit’s digital financial solutions for small- to medium-sized businesses (SMBs) to PragmaGO’s B2B embedded finance services, PragmaGO said in a press release emailed to PYMNTS.

“The acquisition of Omnicredit is an important step in the implementation of our international development strategy,” Vjaceslav Lypko, head of international expansion at PragmaGO, said in the release. “We plan to significantly increase the scale of the company’s operations within its current offering. At the same time, it will be a platform for introducing our innovative B2B embedded finance services to the Romanian market.”

Omnicredit specializes in factoring services and other financing for SMBs, according to the release. In the first half of 2024, the company generated revenues of 1.5 million euros (about $1.6 million) and a net profit of 500,000 euros (about $527,485).

PragmaGO’s embedded finance solutions for business include merchant cash advance and buy now, pay later (BNPL), the release said. These solutions are integrated into partners’ systems, allowing entrepreneurs to raise money for their business in the eCommerce platforms, point of sale (POS) terminals or invoicing systems in which they operate.

Romania presents a key opportunity for growth for PragmaGO, per the release. The country is the second largest market in Central and Eastern Europe in terms of population and retail volume and its eCommerce market generates 6 billion euros (about $6.3 billion) annually.

“Omnicredit will become the leading provider of financing to the [SMB] sector in Romania,” the press release said. “The aim is to close the financing gap in this sector and provide working capital to companies that do not find suitable offers in the traditional banking sector.”

Central Europe is one of the regions in which companies have faced challenges in accessing working capital solutions, according to the PYMNTS Intelligence and Visa collaboration, “The Growth Corporates Working Capital Index 2024-2025: How 1,297 Global CFOs and Treasurers Use Working Capital to Grow Their Businesses.”

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