Press-releases
OR GROUP launches DaemDengi digital platform to foster online services
September 14, 2021. Novosibirsk, Russia: MCC Arifmetika LLC which is the part of OR GROUP and focuses on microfinance launches a new project. The company will develop online loans under the DaemDengi (Eng. GiveMoney) brand. This is the digital platform which comprises a web-site which started operation in summer and a mobile application being tested. The new project will allow Arifmetika to expand its product line and the service supply geography and in the future not to be limited by the Russian market and consider the markets of other countries. Remote services are the priority for Arifmetika: by the end of 2021 the share of online loans in the overall loans issuance will reach 14%, till 2025 it will grow up to 40%.
Online lending is the trend determining the microfinance market development in the nearest future both in Russia and other countries. The pandemic restrictions of 2020 triggered the new technologies introduction at the microfinance market. The volume of remote loan issuance and payments rocketed. This year the upward trend retains which is noted the Expert RA rating agency in its report on the Russian microfinance market in the first half of 20211: concentration on the microloans issued in online segment reached 50% (compared with 35% in the second half of 2019).
«Our company constantly improves its service and introduces new technologies: in 2020 we provided the possibility of signing loan agreements with the help of basic electronic signature, Personal Account started operation on the Arifmetika web-site, a voice assistant which now services about 10% of clients was launched. Remote services are becoming more popular: in August, the number of users of Arifmetika web-site grew 8 times compared with the same period of 2020, — comments Igor Rodyushkin, CEO of MCC Arifmetika. — The aim of new project is to promote convenient online services for consumer loans issuance, building of brand awareness and increasing of company’s target audience. Now we consider the Russian market to be the priority, however we leave open the possibility of entering foreign markets».
The core of Arifmetika clients’ base numbering more than 1.5 mln people are the customers of OR GROUP retail chains and marketplace. The network of supply loan points comprises more than 600 points in more than 250 localities. The company constantly ramps up business; as of the end of July 2020 the loan portfolio made up RUB 2.8 bln increasing by 8% year-on-year. Arifmetika is one of the most efficient companies at the market: in 2020 it ranked among TOP 3 according to the Expert rating agency2 in terms of net profit.
Earlier OR GROUP announced a proposed merger of MCC Arifmetika LLC with Navigator Acquisition Corp. listed on the TSX Venture Exchange. The aim of deal is to develop the installments loans segment, to expand the product range and geography of services provided, including entering other international markets. Digital services are the priority Arifmetika’s business. For further dynamic growth, the company is developing a modern IT infrastructure: this year, the Group has increased server capacities, which allowed to improve the performance of the IT system by 120% and the actual volume of data storage by 40%.
About MCC Arifmetika LLC
Arifmetika is a leading microlending company operating in Russia for more than 11 years.
It uses modern algorithms to manage risks for providing its clients with customized solutions to meet their needs. Its management team manages business processes and consists of 300 professionals, including key specialists who have many years of experience in the microfinance sector.
Arifmetika is currently developing a high-tech platform for disbursing online loans and is a leader in terms of the number of service points among federal companies in the microfinancing market. It manages more than 600 service points in 258 localities of Russia. Arifmetika has its own IT infrastructure, including three data centers in Moscow, Khabarovsk, and Novosibirsk. It uses artificial intelligence and big data solutions to analyze the customer base and develop new products and blockchain to protect personal data.
The headquarters of Arifmetika are located in the city of Novosibirsk.
According to the audited IFRS financial results of the Group for 2020, interest revenue amounted to RUB 2.8 billion, net profit was RUB 0.6 billion and the loan portfolio made up RUB 5.9 billion.
About OR GROUP
OR GROUP (MOEX: ORUP) is a modern trading company that develops the marketplace westfalika.ru, an ecosystem of services, and runs a trade point network a network of retail and service outlets under the Westfalika brand that consists of 8023 outlets in 319 Russian cities and towns.
In October 2017, OR GROUP raised RUB 5.9 billion in an IPO on the Moscow Exchange.
In June 2021, the Expert RA rating agency confirmed the credit rating of the OR GROUP at the ruBBB level and changed the rating outlook from “developing” to “stable.”
According to the audited IFRS financial results of the Group for 2020, revenue amounted to RUB 10.8 billion, net profit - RUB 0.6 billion and EBITDA of RUB 2.3 billion.
1 Microfinance: the results of the first half of 2021: https://raexpert.ru/researches/mfo/1h_2021/
2 Ranking of MFO, 2020: https://raexpert.ru/rankingtable/mfi/2020/tab09/
3 As of 14.09.2021
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