Economy

Transylvanian firm gets HUF 350 mln venture capital

Logistics firm Euro Dori Transport HU received a HUF 350 million (EUR 1.1 mln) venture capital injection from the Carpathian Basin Venture Capital Fund (KMVA). Euro Dori was founded twenty years ago in Transylvania and it essentially pools the capacities of smaller transport companies – typically with two or three lorries – thereby offering them the chance to both bigger contracts and better utilization of their fleets.

Portik said the company had already established its own fleet management system EDT KOMPOZIT in 2017 and is currently operating 15 lorries. Their goal is to have a fleet of around 120 lorries in order to get to the next level in the venture and be among the 100 biggest transport companies in Hungary.

KMVA – financed by the Hungarian state – began its operations in 2017 with a capital of HUF 20 billion (EUR 62 mln) and is aimed at promoting cross-border economic activity in Hungary and its seven neighboring countries (Austria, Croatia, Romania, Serbia, Slovakia, Slovenia and the Ukraine. It typically offers capital injections of up to HUF 480 million by acquiring a stake of between 10%-49% percent in the companies it supports for a four to five year period.

 

Author: Dénes Albert