smeGo hits €238mn outstanding secured lending portfolio, surpasses €33mn in revenue
Following its successful launch in the Netherlands last year, smeGo aims to expand further in Europe and offer established SMEs a full range of financial services and digital tools. In 2024 smeGo plans to maintain the pace of its growth and is actively fundraising for external capital which would help to accelerate the growth of market penetration across western Europe.
Mindaugas Mikalajunas, CEO of smeGo
smeGo, the pan-European financial service platform dedicated to established small and medium-sized enterprises (SMEs), previously known as SME Finance, has continued its upward trajectory with a strong performance during the last year, while earning profits for its bond investors. The company reported a remarkable 49% year on year (YoY) increase in revenues (€33,4mn) and a portfolio growth of 39% YoY, resulting in an outstanding portfolio of €238mn by the end of 2023.
The increasingly volatile macroeconomic environment reinforced the importance of a successful SME sector to the economy in general, and this remains a robust and growing area. Established SMEs in particular need both financing and business know-how to keep growing and we are positioned to serve this growing need. According to Statista’s data for 2023, SMEs played a significant role in the European economy, contributing approximately 4.15 trillion euros. However, during the first half of 2023, access to finance remained a critical issue for a substantial portion of Euro area SMEs, with 24% of them reporting severe difficulties in securing external funding, according to the European Investment Fund (EIF).
The early outlooks and market analysis for the coming year do not predict any significant change in this situation. This outlook is further supported by a recent survey conducted among smeGo customers according to whom the macroeconomic environment and unexpected changes in the market will be the biggest challenges they face in the current year.
CEO of smeGo, Mindaugas Mikalajunas, commented on the company’s performance, saying, “We are committed to stable growth and efficient investing, which are pivotal for business development in the current macroeconomic environment. We’ve been bootstrapping up to this point while earning healthy profits for our bond investors every year. In 2024 we are making significant internal investments in in-house IT development: multiple lending & daily banking product launches as well as customer journey improvements. Also we are actively fundraising for external capital: bonds (€55mn), equity (€50mn), debt (€100mn) which would help us to accelerate the growth of market penetration across western Europe”.
“Last year marks one more milestone for the company – our vision of becoming a fully-fledged platform for established SMEs throughout Europe was brought closer to realization by the successful launches in the Netherlands and Finland, where we’ve already contributed to more than 100 successful SMEs. As the foundation of an international financing platform is in place now, it was clear that the name SME Finance does not support our business aims or show who and what we are, therefore we changed our name to smeGo. We are unique in the market because we offer the digital ease and speed of a fintech company and at the same time the quality and personal touch of the best private banks. We believe that this is the new normal for established SMEs and will help them to flourish and thus stabilize economies”, Mikalajunas further explained.
Mikalajunas further noted, “As for the highlights of the fourth quarter and the whole of 2023, I would single out the launch of the smeGo platform and app besides the launch of our operations in the Netherlands where we also aim to situate our headquarters. We believe we stand out in the fintech sector by emphasizing high-quality advice and attracting the brightest minds in the banking industry within the region, alongside cutting-edge technology. SMEs require more than just quick financing solutions and easy payments; they also need long-term strategic support and a community, and that’s precisely what we are cultivating here at smeGo.”
“Moreover, we launched a pool of guarantees of more than €40mn in cooperation with the European Investment Fund in August last year to further empower the growth of small businesses seeking to invest in innovation, digitalisation, and sustainability throughout Europe. We are determined to give our best to enable as many SMEs as possible to exploit all the new opportunities brought by the new technologies and to do that responsibly. At the same time, we are certain that the human aspect will become even more important in the new age of AI and we are in a favorable position to execute all our plans in a way that would add value to the whole ecosystem of SMEs”, Mikalajunas added.
smeGo is a pan-European financial service platform for established SMEs. We have helped more than 4000 SMEs during seven years and a total financed amount is €1.8B as of 31.12.2023. We offer the digital ease and speed of a fintech company and at the same time the quality and personal touch of the best private banks which we believe is the new normal for established SMEs. Boasting a team of over 140 professionals from 6 different nationalities, smeGo operates from offices in Amsterdam, Helsinki, Vilnius, Tallinn, and Riga. Established in 2016 under the name of SME Finance in Lithuania by two seasoned banking industry experts, the company is committed to building a true ecosystem for established SMEs and continues to drive growth and innovation within the SME sector.