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MCI Management, a Polish investment firm which sponsors this blog, has announced the results of their 2012 fiscal year and announces a new investment in Turkey. They’ve done quite a bit this year, so we’ve decided to go ahead and provide an overview of the past year here.
The fund added 4 companies to their portfolio in 2012: KupiVIP, 21Diamonds, Moje Biuro, and Windeln.de. All told, MCI reports consolidated net profit of 9.96 million euro and says that it had record-breaking exit level of 47.9 million euro. In context, the fund reported a consolidated net profit of 4.48 million euro for 2011. Consolidated net assets under the fund’s control grew from 125.9 million euro in 2011 to 137 million for this past year and assets under the management of Private Equity Managers, the company which manages the fund’s assets grew by 5% to 198.66 million euro.
As far as the fund’s investments this past year, the minority-ownership stake that it obtained for 12 million euro was probably the most significant. In just 4 years, KupiVIP has established itself as a top online retailer in Russia. Last July, we reported that KupiVIP raised $38 million from a group of investors and that it had raised a total of $124 million to that. They averaged more than 500,000 daily visitors at that time and have become a premier shopping club in Russia.
21Diamonds is an online jewelry store which allows customers to customize their purchases. The store allows users to identify the model, gemstone, and precious metal that they’d like in their jewelry. This company operates primarily in Europe, Brazil, India, and the United States, but is hoping to create a more global presence. MCI tells us that the global jewelry market is valued at about $150 billion, but that online sales consist of only about 3% of that market. They project that online sales will increase to 10 billion euro by 2015 or 10% of the total market.
MCI says that its 3rd investment was in the Polish site Moje-biuro.pl, which offers cloud-based accounting software. We’re told that Helix Ventures Partners FIZ, which was created in conjunction with the National Capital Fund invested 1.2 million euro in the site this past year. MCI says that this funding will be directed at supporting marketing, developing distribution-channels, and strengthening the their team of experts. Further, Moje-biuro.pl counts as a client institutions like Alios Bank, which is offering its customers access to Moje Biuro’s product as part of its “Virtual Office” service.
We’ve written about MCI’s investment in Windeln pretty recently. In summary, MCI combined with several other investors to offer the German online retailer for children’s products 15 million euro in funding.
In total, MCI says that they invested 22.7 million euro in 2012, with 18.4 million going towards next investment and the rest towards subsequent rounds of financing.
Incidentally, on the day that they review the year 2012, MCI announces that they’re moving into Turkey with an investment in the largest Turkish IT distributor Indeks Bilgisayar Sistemleri Mühendislik Sanayi ve Ticaret A.Ş. MCI intends to acquire a 20% stake for approximately 0.42 euro/share and that the final payment tranche is dependent upon Indeks hitting their financial targets for 2013-14. Indeks has annual revenue of more than $850 million.
Finally, the fund raised 46.9 million euro in disinvestments this past year. The sale of their stake in Mall.cz alone brought them 38 million euro. They also report having sold their majority-share of Nexto to Ruch and their shares in Retail Info to Czech media conglomerate Mafra.
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vita at goaleurope dot com