ESTO's Innovative Approach is Redefining the Baltic BNPL Market
Nov 18, 2023
Key Takeaways
- ESTO has achieved remarkable results in Q3 2023, with a 54% revenue growth compared to Q3 2022, reaching a record-high revenue of EUR 17.5 million. The company's transactional turnover also increased by 66% during the first nine months of 2023.
- ESTO stands out in the Buy Now, Pay Later (BNPL) landscape by offering a comprehensive suite of services, including BNPL options, Installment Loans, Account to Account payments, marketing support, a shopping account, and a loyalty program.
- ESTO's unique range of services sets it apart from competitors like Klarna and Affirm, as it extends card payments, credit lines, consumer loan schedules, and lead brokerage to its clients.
- ESTO maintains a strong position in the Baltic region and plans to replicate its success in Latvia and Lithuania. The company sees potential for growth due to the region's strong commitment and responsible financial behavior, as well as rising euribor rates.
- ESTO offers an appealing investment opportunity as a leading non-bank financial institution in the Baltics, with the potential to scale all over Europe. The company's ability to expand its portfolio and maintain high-quality lending practices makes it an attractive prospect for investors.
Estonia - November 18, 2023 /MarketersMEDIA/ —
ESTO, a leading Estonian payment processor and consumer credit provider, has emerged as a potent challenger in the Buy Now, Pay Later (BNPL) landscape, positioning itself alongside global giants like Klarna, ScalaPay, and AfterPay. With remarkable results from the third quarter of 2023, ESTO is redefining the Baltic BNPL market, appealing to potential investors worldwide.
Record-Breaking Results
ESTO's Q3 2023 results have exceeded all expectations, consolidating its position as a market leader in the Baltic region. The company reported a staggering 54 percent revenue growth compared to Q3 2022, reaching a record-high revenue of EUR 17.5 million. This surge demonstrates ESTO's capability to expand its customer base, secure new partnerships, and optimize existing monetization strategies.
Mikk Metsa, Founder and CEO of ESTO, commented on the exceptional results, "Our market position remains robust, especially in Estonia, where ESTO has become a household name. We have achieved impressive financial results, surpassing our revenue growth, EBITDA, and Net Profit expectations. Our momentum is strong, and we are poised for a promising trajectory in the coming quarters."
The company achieved a record-breaking transactional turnover (GMV) of over EUR 118 million during the first nine months of 2023, signifying a remarkable 66 percent increase compared to the same period in 2022. With over 300 new points of sale added to its merchant network, contributing an estimated annual GMV of approximately EUR 100 million, the launch of the ESTO Platform has diversified the company's revenue streams and enhanced its appeal to clients.
Comparing ESTO with Global Competitors
When comparing ESTO to international competitors like Klarna, ScalaPay, and AfterPay, it's essential to note that ESTO’s approach is rooted in establishing a vast network of online and offline merchants.
In a landscape dominated by industry giants like Klarna, ESTO stands out by offering a comprehensive suite of services to its clients. Much like Klarna, ESTO provides Buy Now, Pay Later (BNPL) options, Installment Loans, Account to Account payments, marketing support, a shopping account, and a loyalty program.
What sets ESTO apart from Klarna is its unique range of services not provided by competitors like Klarna and Affirm. ESTO goes beyond the ordinary, extending card payments, credit lines, consumer loan schedules, and lead brokerage to its clients. These added services empower ESTO's customers with a versatile set of financial tools, enhancing their shopping experience and financial flexibility.
Kevin Koik, ESTO's CFO, explains, "We have succeeded in building an extensive merchant network. Our partners recognize the advantages of joining our network, such as access to a large customer base and the ability to offer their products. This network also benefits consumers, who can choose from various merchants and offerings. ESTO maintains an entire customer lifecycle within its ecosystem, enabling us to provide the best solutions."
Stellar Q3 Achievements
Reflecting on ESTO's achievements in Q3 2023, Kevin Koik stated, "We are pleased with our achievements. Our revenue increased by 54 percent year-on-year, and our profits grew by 23 percent year-on-year. This marks our 20th consecutive quarter of profit. We have effectively managed our cost of funds in a rising interest rate environment, keeping it under 11 percent. In the third quarter alone, we secured EUR 9 million, totaling EUR 18.5 million in new funding for the year."
A Bright Outlook
ESTO's future looks promising. The company anticipates further growth in Estonia and sees the potential to replicate its success in Latvia and Lithuania. “The strong commitment and responsible financial behavior of customers in the Baltic region, coupled with euribor rates reaching their peak, suggest a future with more financial flexibility for individuals,” Kevin Koik adds.
Attracting Potential Investors
For potential investors, ESTO offers an appealing opportunity. Kevin Koik summarized it as, "Leading non-bank financial institution in the Baltics with the potential to scale all over Europe." The company's ability to expand its portfolio and increase revenues while maintaining high-quality lending practices makes it a compelling investment prospect.
In conclusion, ESTO's exceptional performance in the first nine months of 2023 reflects its strategic focus on growth, innovation, and resilience in the face of market challenges. As it continues to excel in a dynamic economic landscape, ESTO is poised to deliver significant value to its shareholders.
About ESTO
ESTO is a financial services company with Estonian roots, which started in 2017. The brand was born from the need for a new generation of payment solutions that would suit both the end consumer and the seller. With a strong emphasis on technology and customer loyalty, ESTO is positioned to reshape the e-commerce landscape in the Baltics and beyond.
Contact Info:
Name: Mikk Metsa
Email: Send Email
Organization: ESTO
Website: https://esto.eu/global/
Release ID: 89113605
In the event of any inaccuracies, problems, or queries arising from the content shared in this press release, we encourage you to notify us immediately at [email protected]. Our diligent team will be readily available to respond and take swift action within 8 hours to rectify any identified issues or assist with removal requests. Ensuring the provision of high-quality and precise information is paramount to us.
More News
![aritcles[0].caption](https://static.ffx.io/images/$zoom_0.5568901851851852%2C$multiply_0.7554%2C$ratio_1.777778%2C$width_1059%2C$x_0%2C$y_146/t_crop_custom/q_86%2Cf_auto/fd444d7d1c87da35f1317667f1b33bf033f9cb25)
ASX rises after Wall Street’s best day in six weeks
The US stock market rallied to its best day in six weeks after falling oil prices and easing pressure from the bond market helped Wall Street reverse many of its moves from the prior day, setting up the Australian sharemarket for a positive start to the session.
DAILY MAIL COMMENT: As he tells tech bosses that we must 'not lose control of our destiny', the King clearly gets it on AI. But what about Labour?
Anyone who dismissed Sir Stephen Hawking's warning more than a decade ago that AI could 'spell the end of the human race' may well be reconsidering
It's still illegal yet the police simply don't seem to care why the whole country stinks of weed: PETER HITCHENS
The offence - on paper - carries a maximum sentence of five years in prison plus an unlimited fine. But if you think this is enforced you must be joking.
Muslim cleric given award by Archbishop called the butchers of October 7 'freedom fighters', said suicide attacks against Nato troops were 'lawful' - and that men could take four wives at once without permission
The first female Archbishop of Canterbury in more than 1,400 years kicked off Friday's awards with a characteristically woke speech.
'I eagerly picked up my daughter's FaceTime from university. After a few seconds, it was clear to me she was high on coke': Mail investigation reveals how cheap 'premium' cocaine is sweeping through university Freshers week
It was 2am when the phone rang and Fiona saw her 18-year-old daughter Zoe's name flash up on the screen. She picked up to see Zoe and her new boyfriend Leo Facetiming her from a club.
Portland's wokest lawmaker refuses to apologize for vile tweets that backed rioting and called for man he didn't like to be 'whipped in the head with a framing hammer'
Mitch Green, who represents District 4, had old tweets resurface, including where he vouched for rioting and abolishing the police.
Major cannabis driving law shake-up: Aussie state moves to give medicinal users the green light
It is yet to receive assent from the NSW Governor, meaning existing restrictions remain in force.
Moment balaclava-clad children as young as five steal from corner shop while their parents wait outside
Shopkeeper Erdogan Yigitoglu, 52, has spent years sharing CCTV footage of shoplifters - including young kids stealing while concealing their identities.
Australia news LIVE: International students forced to consider their future after Burke’s migration overhaul; University bodies, charities slam new rules
Follow along as we bring you the latest live news updates from Australia and around the world.
Woman behind the wheel of SUV that slammed into LA bus before NBC chopper crash was 'impaired by drugs' as prior convictions are revealed
Bailee Lynn Rios, 36, was charged with murder Wednesday morning and was being held on $4.03 million bail. She is also facing additional counts of driving under the influence and reckless driving.
Aussie truckie accused of murdering Thai teen and dumping her in a suitcase to face court
Simon Peter Carman, 45, from Perth's southern suburbs, could face the death penalty over the alleged murder of Tunchanok Donhomla, 17, also known as Cake.
Church worker loses unfair dismissal bid after secret affair with colleague who sent him explicit images ended in AVO fallout
A workplace romance involving explicit messages, a breakup, repeated contact allegations and an AVO has ended in a failed unfair dismissal claim.
WA news LIVE: D-Day for the Dockers as team prepares for Sydney prelim clash
Follow our live coverage here.
Microsoft boss warns of AI creating own 'silicon species' to compete with humans
Mustafa Suleyman, the head of Microsoft AI, said on Thursday that developing autonomous AI risks creating a 'a new silicon species which will no doubt compete with us for resources'.
Man pleads guilty to attempted rape after attacking female Tube passenger on Bakerloo line train
Vincent Saxon, 54, of no fixed address, admitted the offence at Inner London Crown Court on Thursday, September 17
Poker legend's huge loss in courtroom gamble after he let a rival rack up massive debts - and then lost the lot as judge rules 'bets with mates' don't have to be paid out
Gary Benson was an inaugural member of the Australian Poker Hall of Fame with career earnings of $2,826,031, putting him 20th on the local all-time money list.
Aussies warned to expect more interest rate hikes as IMF delivers a blunt warning to Jim Chalmers over tax and spending
A global financial body has given the Reserve Bank the green light to hike interest rates and urged Treasurer Jim Chalmers to be bolder on tax reform.
The Daily Debate: Do you think the Government is doing enough to protect us from AI going rogue?
Vote now and you'll find the results in tomorrow's Morning Mail newsletter . You can also join our debate to discuss your vote.
University lecturer who wanted to work from home 900km from her job loses Fair Work battle after it found her 'cognitive disorder' diagnosis was made up
Dr Anna Kokavec from James Cook University has lost a Fair Work battle after admitting she invented a medical diagnosis to support her work from home claim.
Ricky Gervais finds buyer within days for £2.95M riverside home as he plans marriage to his partner of 44 years
He bought the property in Buckinghamshire, which he described as his 'little country retreat', for £2.75million in 2014.
Kemi Badenoch orders lawyers to challenge Labour cuts which Tory-run council says has forced it to hike council tax by 94 per cent
The Tory leader said it was 'outrageous' that the amount was increasing so much but said it was due to 40 per cent cuts to their funding by Labour.
China is building 'first-ever mothership capable of launching submarine drones'
Images taken by Vantor, a US defence intelligence company, show a red ship under construction at the Hudong-Zhonghua shipyard.
Piddington migrant camp dealt another blow after discovery of one of world's rarest bats at planned asylum site
Barbastelle bats, a rare species of bats whose numbers are thought to have declined across Europe, have been detected by wildlife experts.
Ministers have 'no credible plan' to turn round British Steel - as Labour's flagship nationalisation racks up losses of more than £500 million
In a damning report, the Commons public accounts committee said the government was 'unable to articulate' a business plan for the troubled firm, which was nationalised more than a year ago.
Sir Alex Ferguson unveils his Spotify playlist as huge charity donation revealed
'A song can be so powerful in connecting us with memories'
Australian cop stood down after allegedly assaulting his baby could face three years behind bars
Nickolas Wayne Peake, 30, pleaded guilty to one count of aggravated assault when he appeared in Perth's Midland Magistrates Court on Thursday.
Devastating nickname fed-up Minneapolis locals have given to America's wokest prosecutor revealed, after she spent $500k of taxpayer cash on bodyguards
Hennepin County Attorney Mary Moriarty, 62, was handed the nickname on social media following numerous reports of accused criminals, including alleged murderers, being set free.
British mother kidnapped by gunmen in Malawi is freed in daring rescue
Nusrat Osman, 47, from Leicester, was abducted in the Mount Pleasant area of Blantyre last Friday.
JOSEPH DINNAGE: He'll hate me saying this. But, as Britain's economy nears the eye of the storm, Burnham is displaying Liz Truss levels of denial
And who do we have to steer us to safety? Andy Burnham. I hope you brought trunks.
'I didn't kill her': Ex-lover of mum found dead on a beach breaks his silence about the sinister whispers about him - as he reveals she had earlier escaped an alleged kidnapper
Payge Leembruggen, 31, was found dead in the sand dunes near North Wall beach in Mackay around 8am Tuesday, when her body was spotted by a dog walker.
Concerns about crumbling wall of rental property which crushed 77-year-old grandmother to death were raised eight years before the tragedy, coroner finds
Clarice Berry died from chest injuries after the 3,800kg gable wall of her rental property in Wigan fell and buried her alive on July 18 2021.
Every tourist's worst nightmare is seen for the first time after allegedly trying to MURDER Australian man minding his own business while enjoying meal at NYC McDonald's
Juan Mercedes, 25, was indicted on attempted murder for allegedly stabbing an Australian teenager on vacation in New York City while eating a meal in McDonald's.
Anthony Albanese's government announces sweeping changes to migration: Who stays and who goes
The Albanese government is unveiling sweeping changes to Australia's migration system in a major speech by Immigration Minister Tony Burke, titled 'Who arrives, who stays, who leaves'.
Teen facing 30 extremist charges after FBI tip off
The 18-year-old Queensland man was also charged with possessing child abuse material.
You can't catch me! Moment mischievous cat causes chaos at vets
CCTV footage captures the moment two veterinarians open the cage in a small clinic room in Guangdong, China, only for the white feline to suddenly make a break for freedom.
Hyrox athlete apologises for finishing race after soiling herself
Joanna Wietrzyk issued a statement on her personal Instagram page to address the situation that unravelled after her race in Beijing.
Gun-toting Democrat's jaw-dropping boast about illegal migrants detonates in deep red state
Arkansas Democratic Senate candidate Hallie Shoffner voiced her support for illegal immigrant farm workers, arguing that farmers actually prefer them to American workers.
The truth about teen lifeguard's fatal shark attack 18 months on - as her dad speaks out: 'It killed her instantly'
Harrowing details have emerged about Charlize Zmuda's death after she was attacked by a shark at a Bridie Island beach.
Golden retriever 'guard dog' filmed trying to PLAY with intruder who broke into his home
In a video that seems like straight out of a cartoon, a kind-spirited golden retriever named Nash can be seen trying to play with a burglar who just broke into his home earlier this month.
Putin could be planning to bomb Britain and other countries supporting Ukraine, Polish prime minister warns
Donald Tusk issued a chilling warning after the country was forced to close its airspace, scramble fighter jets and close airports due to the Kremlin's latest assault.
YOUR NEWS, OUR NETWORK.
Do you have Great News you want to tell the world?
Be it updates about your business or your community, you can make sure that it’s heard by submitting your story to our network reaching hundreds of news sites across 6 verticals.