About the company
Adalan Ventures PLC is a Russia-based fintech company providing small short-term loans to customers.
The company has been operating in the Russian microcredit market since 2011 and is authorised to conduct microfinance activities by the Central Bank of Russia.
In 2020, Zaim implemented an online-focused business strategy and currently provides 86% of loans via its online platform.
How it is doing
Zaim Credit Systems PLC (LSE:ZAIM), a UK holding company of Russia-based fintech company Zaim Express, has seemingly lost ownership of its Russian subsidiary following an unauthorised transfer of ownership.
In the Russian State Register of Legal Entities, the ownership of Zaim Express was transferred to a ‘Mr Sidorov’ without the consent or knowledge of the board.
Mr Sidorov apparently took ownership of the company when a new lender, against the authorisation of the board, enforced its security over shares in Zaim Express after calling on owed debts, under which the securities were sold on to Mr Sidorov.
Only following an investigation with the help of international advisors was the change, which Zaim Credit has called “questionable from a Russian and English law standpoint”, discovered.
Zaim Credit Systems PLC (LSE:ZAIM), one of the few western-based businesses still operating in Russia, said all lines had continued to grow despite the sanctions imposed after the Ukraine invasion.
Helped by a recovery in the rouble, the payday lender said total loans issued grew by 13% quarter-on-quarter to £9.3mln and 47% year-on-year in the three months to end-June 2022.
Zaim Credit Systems PLC (LSE:ZAIM) said its Russian-based subsidiary Zaim Express is “significantly overperforming” a fast-growing market in the past quarter.
The fintech arm, which provides rouble-denominated ‘microloans’ to consumers online via its website and mobile app, reported 5% quarter-on-quarter growth in its first quarter to end-March, or 24% on a constant currency basis.
What management says
Zaim Credit Systems PLC (LSE:ZAIM) (Zaim Credit Systems PLC (LSE:ZAIM)) Siro Cicconi, chief executive joins Proactive London's Katie Pilbeam to talk about their 2021 progress which included a record number of loans.
He says they continued to perform well and the growth in the business remains strong alongside their continued investment in the proprietary platform and process, including the launch of mobile application, which he believes represents an additional sales channel and a significant growth driver of the business.