Our 3Q26 report is now available. CEO Dave Nangle reflects on portfolio momentum, AI-driven efficiency, important steps taken to strengthen the balance sheet, and the next phase of capital allocation.
Strong portfolio momentum, with capital allocation shifting to buybacks
During Q3, portfolio companies performed strongly, exits continued to turn NAV into cash, and the company’s deleveraging phase was substantially completed. With the balance sheet strengthened, the focus can now shift toward our shares and future buybacks as future exit proceeds are received.
Our NAV was broadly flat over the quarter ending at USD 401.7 million. Of our big three holdings, Creditas and Juspay carry their recent round marks. Konfío is valued on a mark-to-model basis and was marked down -7% QoQ. Although currency movements and lower peer multiples remained modest headwinds, financials at our portfolio companies continued to compound, arguably delivering the best underlying trends of our tenure.
Portfolio companies accelerate with AI-driven efficiency
Creditas reached a USD 1.6 billion loan portfolio in 2Q26, up 26% year on year, marking a ninth consecutive quarter of accelerating growth. Revenue increased 30%, while AI-led efficiency helped reduce headcount and customer acquisition costs. Solfácil’s core panel distribution volumes rose more than 50% year on year and the business is consistently profitable at both EBITDA and net income level. Juspay’s international expansion is gaining momentum, while India’s introduction of a new fee on larger UPI merchant payments creates an additional revenue stream. Abhi passed USD 100 million in annual recurring revenue while profitable, and its Pakistan business entered the final stages of an IPO process.
From deleveraging to value-creating capital allocation
VEF secured a SEK 150 million revolving credit facility and initiated early redemption of our SEK 300 million bonds, replacing a bullet maturity with a flexible liquidity tool. Over the past two years, VEF has delivered more than USD 50 million in gross exits, at or around NAV, and used most of the proceeds to reduce debt. Going forward, capital allocation can increasingly focus on share buybacks, with the aim of narrowing the current discount to NAV.
VEF CEO, Dave Nangle:
“3Q26 was an important one for our balance sheet. Over the past two years we have delivered exits, at or around our NAV marks, and used the bulk of those proceeds to pay down debt. That deleveraging phase is now substantially complete. Our capital allocation focus shifts from debt to buying back our own shares, given the current discount. Longer term, we will keep backing the best fintech entrepreneurs across our markets with many opportunities still ahead of us.”
For a full read of Dave Nangle’s management report, please see our 3Q26 report here.