Montenegrin Fintech Profit App Raises €183,982 in Public Offering

Profit App International, a Montenegrin fintech firm, has successfully raised €183,982 in a public offering, surpassing the 15% success threshold by 0.2 percentage points. The company sold 10,120 shares at a nominal value of €18.18 each, aiming to finance the acquisition of electronic money licenses from Montenegrin and European Union authorities.

Why this matters: The successful fundraising by Profit App International highlights the growing importance of fintech companies in the European Union, and their potential to disrupt traditional financial services. As the industry continues to evolve, the ability of fintech firms to secure necessary licenses and expand their operations will have significant implications for the future of digital financial services.

The public offering sought to raise a total of €1.225 million to cover the costs of the electronic money permits. Profit App International has already applied for the licenses, with an expected cost of €400,000 for the Montenegrin permit and €600,000 for the EU one. This follows a private placement in December, where the company raised €275,009 by selling 15,127 new shares.

Established in May 2019, Profit App International is 99.6%-controlled by Podgorica-based Profit App, which is 60%-owned by its executive director Vojin Raskovic. The company offers various services, including mobile application payments, instant money transfer, and instant cashback, in Montenegro, Slovenia, Serbia, and Bosnia and Herzegovina. Profit App International plans to expand its operations in the European Union in the coming period.

The successful public offering was announced by the Montenegro Stock Exchange on May 13, 2024, following Profit App International's offering of 67,388 new shares to interested investors in April. The company's preliminary pre-tax profit rose to €161,000 in 2023, up from €107,000 in 2022, demonstrating its strong financial performance and growth potential.

The funds raised through the public offering will enable Profit App International to secure the necessary electronic money licenses, facilitating its expansion into the European Union market. As the fintech industry continues to grow and evolve, the company's successful fundraising and planned expansion highlight the increasing importance of digital financial services and the potential for innovative startups to thrive in this competitive landscape.

Key Takeaways

• Profit App International raises €183,982 in public offering.
• Funds to be used for electronic money licenses in Montenegro and EU.
• Company aims to expand operations in the European Union.
• Profit App International's pre-tax profit rose to €161,000 in 2023.
• Fintech firm's growth highlights importance of digital financial services.