Vemanti Group Stock Rockets After Witnessing Solid Jump in Loans To SMEs
Many small caps have managed to make handsome moves in recent days and one of the notable movers on Wednesday was that of Vemanti Group, Inc. (OTCMKTS:VMNT). The stock rocketed by as much as 153% after the company made a major disclosure with regards to its business. Considering the remarkable rally enjoyed by the company, it could be worthwhile for investors to take a closer look at its business.
Fvndit Has Disbursed Over $15 Million In Loans To SMEs
Vemanti Group is a technology focussed company and owns a string of assets. It primarily focuses on technology development and investment. It is well known for generating growth in emerging technology through acquisitions and investments.
On Wednesday, the company made a major announcement with regards to the quantum of loans disbursed through eLoan JSC, its P2P lending marketplace. Vemanti announced that loans to the tune of as much as $15 million were disbursed to small and medium-sized enterprises (SMEs) in Vietnam. eLoan JSC is ultimately owned by Fvndit Inc, one of the many portfolio companies of Vemanti.
The revenues generated by eLoan in 2019 financial soared by as much as 338% year on year. Moreover, the company’s business is expected to grow this year as well despite the uncertainties brought about by the coronavirus pandemic.
The loans disbursed by the company have an average ticket size of $50,000. The fact that eLoan is involved heavily in the SMEs sector is also a positive aspect of its business. These enterprises are extremely important to the economy of Vietnam and as much as 98% of all enterprises belong to this particular category. However, most of these companies do not often have access to credit and that is the gap in the market that eLoan is trying to fill.
According to some estimates, as much as 70% of SMEs in the country do not have access to financing and that makes for a large addressable market that could be leveraged by eLoan. Tan Tran, who is the Chief Executive Officer of Vemanti Group, stated that the company is confident of generating further growth through strategic partnerships. The company is apparently working on a few potential partnerships and has already put in place partnerships with Investree and Nam A Bank.
On the other hand, the company had also provided a corporate update earlier on in July. The CEO stated that despite the current challenges to the business environment, the business fundamentals of the company are intact and additional updates are going to be provided by Vemanti later on. The latest information with regards to eLoan is a major positive for Vemanti and puts into perspective the massive rally enjoyed by the stock yesterday. Investors could do well to keep an eye on Vemanti and its businesses in the coming days.
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