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Multitude provides 8 MEUR in debt capital to an Estonian fintech company Hoovi

MULTAnalyst Comment18.03.2025 klo 13.50
Roni PeuranheimoAnalyst
Discuss

Multitude's Wholesale Banking unit has entered into a strategic partnership with the Estonian fintech company Hoovi. The company will provide Hoovi with 8 MEUR in debt capital through a structured bond issue. Our estimates expect significant growth in Wholesale Banking’s debt investments in the coming years and thus, the news doesn’t cause a need for immediate estimate revisions.

Hoovi is an Estonian fintech company specializing in embedded credit and hire purchase solutions for merchants and SMEs. Hoovi enables merchants to increase their sales and improve financing to customers by directly integrating financing options into business transactions.

Financing other fintech is deeply embedded in the strategy of Multitude’s Wholesale Banking business unit. Thus, a transaction like this didn’t come as a surprise. Multitude’s Wholesale Banking was established as a separate independent business unit at the beginning of 2024. Since then, the business unit has experienced significant growth while also being profitable (measured by earnings before taxes).

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Multitude is a digital bank that offers lending and online banking services to consumers, small and medium-sized businesses, and other fintechs overlooked by traditional banks. The company was founded in 2005 in Finland and currently operates in 17 countries. The company operates with three business units: Consumer Banking (Ferratum), SME Banking (CapitalBox) and Wholesale Banking (Multitude Bank).

Read more on company page

Key Estimate Figures20.12.2024

202324e25e
Operating income204.0215.3229.0
growth-%4.6 %5.5 %6.4 %
EBIT (adj.)19.020.126.6
EBIT-% (adj.)9.3 %9.3 %11.6 %
EPS (adj.)0.510.530.83
Dividend0.190.200.27
Dividend %4.3 %3.4 %4.5 %
P/E (adj.)8.711.17.1
EV/EBITDAneg.neg.1.5

Forum discussions

Thanks for the great analysis Could you elaborate on those regulatory challenges regarding share buybacks?
12 hours ago
by Putti
0
Hi @Siirala Thanks, good to hear that the analysis is of interest! That is a relevant question, and it is certainly influenced by many factors...
13 hours ago
by Roni Peuranheimo
3
NuWays raised the price target from 11€ to 12€, so they are clearly more optimistic than Roni.
15 hours ago
by Siirala
1
Thanks for the good work, Roni; you clearly have a deep understanding of the company. Could you elaborate a bit on your thoughts regarding the...
16 hours ago
by Siirala
2
And here is the company report made by Roni as well. Inderes Multitude Q2'26: Tulovirrat monipuolistuvat, arvostus ei seuraa perässä -... Multituden...
16 hours ago
by Sijoittaja-alokas
1
Roni interviewed Multitude’s CEO Antti Kumpulainen Topics: (00:00) Introduction (00:11) Key highlights of Q2 (02:21) Non-recurring items (03...
yesterday
by Sijoittaja-alokas
0
Multitude’s performance was definitely strong again. If one believes in the confirmed guidance for 2026 and the growth for 2027 and 2028, then...
yesterday
by Siirala
4