17 May 2022. 4finance Holding S.A. (the “Group”), one of Europe’s largest online and mobile consumer lending groups has expanded to South-East Asia with the acquisition of Online Loans Pilipinas Financing, Inc. (OLP).
The deal sees 4finance enter a market of 110 million people with an established and profitable digital lending business. OLP offers both instalment and single payment loans with a range of related services. OLP lends up to PHP 20,000 (EUR 362) as a single payment loan and up to PHP 30,000 (EUR 543) for instalment loans of up to six-months. OLP is registered as a financing company with the Securities and Exchange Commission of the Philippines.
The Group acquired 100% of the business for EUR 6.6 million, with an additional EUR 5.0 million of funding to replace existing debt. An earn-out payment may be payable subject to 2022 audited IFRS net profit.
OLP had a EUR 6.4 million net loan portfolio as of 31 Dec 2021, with total revenues of EUR 23.7 million and net profit of EUR 3.2 million for 2021. The business expects strong growth in net profit for 2022 and is ahead of its budget so far this year.
“The Philippines is a huge market with great potential. There is a significantly underserved group of creditworthy people who seek convenient and timely access to useful credit. Adding OLP to our Group brings increased revenue, geographic diversification, and access to a growing market,” said 4finance CEO Kieran Donnelly.
“We have had the opportunity of watching the business for nearly a year to see how it grew and adapted to changing regulation, we believe it will be good fit in the Group.”