09 December 2020
Gofingo Group's profitability remains stable | The Group estimates a profit of 2 million EUR for 2020
The Gofingo Group is partnering with PeerBerry since the beginning of 2018. The Group’s total loan portfolio at the end of November 2020 amounted to 13,5 million EUR. Currently, the share of Gofingo Group loans accounts for 11.7% (or 3,37 million EUR) in the PeerBerry total portfolio.
Currently, there are 4 Gofingo Group companies on the list of PeerBerry partners. The fifth company, which is partly owned by the Gofingo Group – Senmo in Vietnam. This company is a joint venture established in partnership with the Aventus Group and list loans on the platform under the Aventus Group name. Gofingo Group loans, same as Aventus Group loans, are backed with a buyback guarantee and the Group guarantee.
In 2019, the net profit of the Gofingo Group was 2.1 million EUR. Despite the challenges posed by the pandemic this year, the profitability of Gofingo Group companies did not decrease – it remains at a similar level as last year. The Gofingo Group plans to finish this year with a net profit of about 2 million EUR.
We asked Ignas Dundulis, the CEO of Gofingo Group, to share how the companies, that operate under the Gofingo Group name, are doing this year.
What are the results of the Gofingo Group this year in comparison with the last year?
Due to the pandemic, we were not able to grow at the pace we planned at the beginning of the year, but we are glad to be able to maintain profitable operations in all companies of the Group. It is very likely that by the end of the year, we will achieve last year’s operating result, or even exceed it if consumption does not decrease in December.
What impact did the pandemic have on the Gofingo Group business? What were the main challenges?
Of course, the pandemic had an impact on the Group’s business, especially during the first wave, when uncertainty and stagnation persisted in the market for some time.
Our main goal during the most challenging period was not to stop activities, retain employees, and protect their health.
During the first wave of the pandemic, the governments in different countries introduced restrictions that led to a temporary decline in consumption and resulted in a decrease of lending volumes, especially in March-April. In May-June, markets started to recover, and the consumption jumped up again. The number of new loans grew accordingly.
Today we do not feel any new impact of the pandemic. The activity became stable, and we are glad that we managed to keep the employees healthy and motivated. In summary, now we can confidently say that the pandemic has taught us to respond quickly to previously not experienced and rapid evolving market changes, proved the dedication of our employees, and strengthened our team spirit.
We see that your business strategy is concentrated in the Ukrainian market. Could you explain why? What are Gofingo Group’s future business plans?
Years of our operations and the pandemic have shown that the Ukrainian market is one of the most stable and reliable among those in which the Gofingo Group operates.
It is worth to note that this market was also one of the first in which the Gofingo Group started its operations and quickly became (and currently is) the largest market in which our Group is actively developing.
During almost 4 years of operation in Ukraine, we have gained a lot of know-how about the dynamics, specifics, risks of this market. We have built a strong and qualified team, so we feel strong and safe in making decisions and growing business share in this market. The Ukrainian market also stands out for its size – about 6 million people live in and around the city of Kyiv only. The size of the market makes things easier to compete in the market and find the most profitable niche. Also, it is a country close to the EU market. Ukraine is constantly striving to implement EU standards in various areas. We see great potential in this market in the future, and we will aim for at least 50% annual growth in the coming years as well.
Assessing the challenges of the pandemic that still exist, we are cautious with the plans to open new markets in 2021 yet. Currently, we are focusing on the efficiency and optimization of the operations of the existing group companies.