Target Information

Catalyst Romania Fund I has recently completed the sale of its remaining shares in SmartBill to the Norwegian Group Visma. SmartBill is a prominent Romanian company offering invoicing, inventory, and accounting cloud services, serving over 110,000 small and medium-sized enterprises (SMEs). Established in 2006 by founders Ioana and Radu Hasan, alongside Mircea Căpățînă, SmartBill launched its first invoicing software in 2011. By 2014, they had released their cloud invoicing product, which significantly contributed to their growth.

Following an €1.1 million financing round led by Catalyst Romania in 2016, SmartBill enhanced its offerings with features such as multi-user access, mobile functionalities, and integrations with various applications, all while ensuring top-tier security for its users. Since then, SmartBill has grown nearly twenty-fold, achieving an annual revenue increase of 30-60% and establishing itself as the leading provider of financial and accounting solutions in Romania.

Industry Overview in Romania

The Romanian technology sector has demonstrated consistent growth, driven by increasing digitalization across various industries. With a burgeoning startup ecosystem and a vibrant community of tech entrepreneurs, Romania has become an attractive destination for venture capital. The country's digital services segment, particularly in fintech, has seen significant advancements, as businesses adopt modern solutions to enhance operational efficiency.

Moreover, the demand for cloud-based applications has surged, reflecting a global trend towards digital transformation. Companies are increasingly seeking innovative solutions to manage their invoicing, accounting, and inventory needs. This environment has created substantial opportunities for businesses like SmartBill, positioned at the forefront of digital financial management.

As of March 2024, SmartBill processes more than 6.5 million documents monthly, with a transaction value of over €35 billion annually. Projections indicate that the company will achieve a 60% increase in turnover for the year and is on track to surpass 150,000 customers. This growth exemplifies the robust potential of the Romanian tech market.

Rationale Behind the Deal

The decision to sell SmartBill aligns with the strategic exit objectives of Catalyst Romania Fund I, which aims to realize returns on its investments within a defined timeframe. Given SmartBill's remarkable growth trajectory and market leadership, the sale offers a profitable exit while facilitating the company's continued expansion under Visma's ownership.

This acquisition not only adds value to Visma’s portfolio but also provides SmartBill with the resources and support necessary to innovate further and enhance its service offerings. As such, the transaction positions both the seller and buyer for ongoing success in the burgeoning Romanian market.

Investor Information

Catalyst Romania Fund I is recognized as Romania's first early-stage venture capital fund, having launched under the EIF’s JEREMIE program. The fund has invested over €12 million in a variety of successful Romanian tech companies over the years. The expertise and resources provided by Catalyst Romania have contributed significantly to the growth and competitive positioning of its portfolio companies, including SmartBill, Vola.ro, and OmniConvert.

Marius Ghenea, the Managing Partner of Catalyst Romania, expressed pride in the success story of SmartBill, highlighting the valuable support provided to the founders throughout the investment period. Catalyst Romania remains committed to fostering innovation and growth in the Romanian startup ecosystem.

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Catalyst Romania's exit from SmartBill appears to be a strategic and timely decision. Given the company's impressive growth and market leadership, selling to a well-established player like Visma enhances the likelihood of SmartBill's sustained success. This move reflects a judicious approach to maximizing returns for Catalyst’s investors while ensuring that SmartBill can leverage Visma's resources to take its services to the next level.

Furthermore, SmartBill’s anticipated revenue growth and expansion of its customer base provide a solid foundation for continued performance. The inflow of investment and expertise from Visma is likely to accelerate the company's innovation and operational capabilities.

In conclusion, this deal presents a favorable outcome for both parties, reaffirming the strength of the Romanian tech market and the viability of investment in the region.

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