U.S. should be the most attractive market for Lithuanian high-tech expansion

30/09/2024

“If a company is looking for expansion opportunities through acquisitions, one of the most attractive markets right now is the American one,” said Šarūnas Šiugžda in an interview with LRT.lt.

During the interview, Šarūnas discussed how Lithuanian companies are making strategic acquisitions in the U.S., particularly in high-tech sectors like the supply chain of semiconductor industry. These moves go beyond expansion – they’re about leveraging innovation and technology to compete on a global scale. Lithuanian businesses are positioned to play a key role in the development of advanced technologies, such as medical and defence, especially as the U.S. seeks reliable partners to reduce dependency on China.

Šarūnas also shared more insights about Altechna’s acquisition of Alpine Research Optics – a high-precision optics manufacturer based in the US, which was acquired last year.

“The semiconductor industry is probably the most promising sector. Both Altechna and ARO have many clients in this segment. This area is highly sensitive in US foreign policy, with very large investments being made to bring it back to America and make it as independent from Taiwanese or Chinese suppliers as possible. We have a large customer base, so as the semiconductor industry further develops in the U.S., very good growth opportunities for our business open up,” added Šarūnas Šiugžda.

Read a full article here.

Horizontal Media Group Plans to Lead in E-commerce: Sena.lt and Tempo.lt Have Ambitions in the European Market

23/09/2024

Two years ago, after successfully acquiring the used book platform Sena.lt, Horizontal Media openly shares its ambition to create a unique regional e-commerce player. Sena.lt prides itself on a strong position in the book market, which grew out of a reader community established 15 years ago. Currently, Sena.lt is the largest used book selling platform in Lithuania, with 176,000 active users.

After becoming part of the Horizontal Media group, Sena.lt implemented several business model changes — transforming from a traditional classifieds portal into a fully functional marketplace, offering significantly more trading functionalities and opportunities for users. These changes have doubled the volume of goods, attracted 44% new users, and increased revenue by four times compared to the same period last year.

“We quickly realized that Sena.lt solves a real problem — helping users sell their read books that often gather dust on shelves. At the same time, we give a large number of users the opportunity to find new books, helping publishers and small bookstores reach their audience and connect with a vast number of book buyers,” says Šarūnas Šiugžda, Chairman of the Board of Horizontal Media, Executive Partner, and Founder of LitCapital.

Sena.lt Creates a New Trading Model

Sena.lt operates as a seamless technological solution — integrating buyers, physical sellers, retail, courier, and payment systems. This means that Sena.lt creates a complete trading ecosystem, where both peer-to-peer (P2P) and business-to-consumer (B2C) models can coexist, offering buyers a wide range of choices.

“Our goal with Sena.lt is to create a full trading ecosystem so that users can find all relevant product categories in one place,” reveals Šarūnas Šiugžda.

Strengthening the Core Functions of Publishers While We Handle Sales

The Sena.lt model is unconventional — thanks to technology, the platform doesn’t need its own warehousing or logistics service system, making it attractive to businesses of various sizes, like publishers, by bypassing traditional intermediaries. This not only increases competition in the market but also provides consumers with a wider selection.

“Publishers can focus on book publishing, and we take care of attracting buyers, fulfilling orders, customer service, and all the necessary functions for business on one platform,” says Šarūnas Šiugžda.

Expansion into Other Product Categories

Sena.lt’s expansion doesn’t stop with books — interior items, music records, board games, and electronics categories are also being expanded on the platform.

“We have identified the refurbished electronics market as highly promising. In Lithuania, this market’s potential is still untapped, which is why Horizontal Media recently introduced Tempo.lt, which has already become the largest platform for selling refurbished phones in Lithuania,” notes Šarūnas Šiugžda.

Considering rising electronic device prices and the diminishing resources needed for their production, secondary device consumption is becoming an essential part of today’s life. Tempo.lt offers a wide selection of professionally refurbished phones, and the platform will also provide an opportunity to conveniently sell used devices, which will be refurbished and reintroduced to the market. In this way, consumers can enjoy lower prices without compromising quality. This sustainable consumption model significantly extends the lifespan of electronic devices.

Space for E-commerce Business Expansion in Lithuania

E-commerce in Lithuania has been growing rapidly in recent years, with several prominent trends reflecting this. In 2023, around half of Lithuania’s population purchased something online at least once. By 2024, it is forecasted that e-commerce revenues in Lithuania will reach approximately EUR 1 billion, with an annual growth rate of around 3.8%.

“As for the market share of e-commerce leaders, it’s about 10-15%, so there’s plenty of room for growth and competition in Lithuania, which is why Sena.lt has ambitions to expand both in terms of book sales and strengthening its position in other product categories,” says Šarūnas Šiugžda.

The Importance of Technology and Data

Looking to the future, Sena.lt will become even more personalized and data-driven. The platform’s success is supported by the technologies behind it. Advanced algorithms and artificial intelligence-based recommendation systems will ensure that users are offered products that match their consumption habits and preferences.

“The creation of an innovative P2P and B2C platform is changing the rules of commerce. By shortening the supply chain and promoting direct relationships between buyers and sellers, we are fundamentally changing the long-standing trading model in Lithuania, which has been based on intermediaries and logistics control,” summarizes Šarūnas Šiugžda.

Expansion Potential in the European Market

Horizontal Media is not hiding its plans to have Sena.lt become not only one of the leaders in e-commerce in Lithuania but also to expand its model to other countries. By 2029, the European e-commerce market is expected to reach around EUR 950 billion. The largest segments are fashion, electronics, and leisure products. Cross-border e-commerce is growing, though still underutilized — only 15% of European consumers purchase from other countries. These market trends indicate that innovative e-commerce models can meet the existing trade demand and have significant expansion potential.

LitCapital invests €1 million in Cargo Stream’s vision to disrupt logistics industry

10/08/2023

LitCapital, an independent growth capital fund dedicated to investing in high-growth companies in the Baltic region, has completed an investment into the supply chain logistics management platform, Cargo Stream.

Founded in 2019, Cargo Stream’s modular cloud-based workspace integrates supply chain processes to enhance control, resource efficiency, and communication from freight sourcing to transport execution and auditing. It offers shippers a streamlined tendering process, facilitates triangulation for maritime, and provides forwarders with an integrated direct booking interface. The investment will accelerate Cargo Stream’s growth by supporting its global expansion through further product development and customer acquisition, as the platform has already shown its ability to attract the interest of major international supply chain market participants.

“We are excited to partner up with LitCapital, an established institutional investor, for our next phase of growth. This investment represents a significant milestone for Cargo Stream as it will further broaden our geographical reach: accelerate growth into Poland and bolster operations in the United Kingdom,” said Šarūnas Belickas, COO of Cargo Stream.

Šarūnas Šiugžda, Founder and Managing Partner at LitCapital, commented: “Cargo Stream exemplifies all the qualities we look for in an investment, including entrepreneurial spirit, robust product quality, speed of multinational customer adoption and a competitive position in a fast-growing market. Cargo Stream has identified a unique opportunity in the logistics market, effectively developing and launching an innovative and technologically sophisticated supply chain management platform. The demand for efficient and digitized logistics management is continuously growing and its significance will only increase in the future. We are extremely happy to be able to work with the team of Cargo Stream.”

LitCapital led the investment round in an electric powertrains designer and manufacturer Elinta Motors

07/11/2022

LitCapital, a growth capital fund focusing on investments in high-growth enterprises, invested in Elinta Motors, which designs, develops, and manufactures turn-key powertrain components and battery systems for commercial vehicles.

Using their extensive background in engineering and electronics, ELINTA began working on the development of e-mobility solutions for electric vehicles in 2010, with the first prototypes of electric trucks introduced a few years later. In 2017, after receiving a positive response from the market participants, ELINTA transferred the invention’s intellectual property rights (IPRs) to the newly created company – ELINTA MOTORS. Ever since its inception, ELINTA MOTORS has been developing and improving its electric mobility offerings, not only enhancing the power and range but also showing extraordinary attention to the durability of its products. ELINTA MOTORS growth will be accelerated by the investment, which will further strengthen its position as an EV powertrain provider across multiple markets along with improving its current manufacturing capabilities.

“We believe that electric mobility is the way of the future, and the electric vehicles market offers plenty of opportunities for further developments and growth. By partnering up with our investors and making use of their knowledge and expertise in enterprise growth we’ll be able to further scale up the production and develop new products” said Laurynas Jokužis, CEO of ELINTA MOTORS.

Šarūnas Šiugžda, Founder and Managing Partner at LitCapital, commented: “The engineering talent of the ELINTA MOTORS and the innovative solutions that they have created astounded us from the very start. Furthermore, the increasing prominence of Electric Vehicles and the overall shift in mobility markets toward renewable energy have also played a key role in LitCapital’s decision to invest. We believe that the market is going to grow further and become more mature, with ELINTA MOTORS being positioned to utilize this opportunity to the fullest”.

ELINTA MOTORS is planning to triple its revenue in 2022 while at the same time maintaining a healthy double-digit EBITDA margin. Attracted funding will be invested in R&D, efficiency improvement solutions, and capacity expansion. The company has an ambitious business growth plan with the aim to become the market leader in selected market segments in the coming years.

Law Firm TGS Baltic advised the Investors and Trinity Jurex advised the Company during the investment process.

Horizontal Media completes acquisition of online classifieds portals Autogidas and Domoplius

12/10/2022

Horizontal Media (“HM” or the “Company”), which had recently received investment from LitCapital, today announces that it has completed its acquisition of online classifieds portals for automotive and real estate – Autogidas and Domoplius. It is expected that the transaction will increase the number of services offered by the Company, enhance customer experience, and strengthen its market position.

Together with the Company’s CEO, Per Moller, LitCapital invested in the closed joint-stock Company Horizontal Media. After the acquisition, the Company now manage online classifieds portals Autogidas and Domoplius as well as peer-to-peer (P2P) book trading platform Sena.lt.

“A devoted customer base, years of experience in digital product management, and an emphasis on providing high-quality services have all led to the conclusion that the platforms acquired have the potential for further grow. We are currently looking into making additional acquisitions that are comparable to those we have already made,” says Per Moller, CEO of Horizontal Media.

“Due to the highly competitive nature of the Lithuanian online classifieds market, we are under constant pressure to develop and implement innovative new services and functionalities for our users. Both Autogidas and Domoplius are well-known for being the second most popular option among local businesses and general population. The primary objective of online classifieds is to provide users with the highest possible quality of services. The expertise of investors in the digital marketing, along with additional financing, will make it possible to enhance the experience of customers more quickly, as well as to simultaneously expand product offerings,” says Evaldas Narbuntovičius, CEO of Autogidas and Domoplius.

Over the course of the transaction, the buyer was advised by the commercial law firm Walless. The seller was represented by the M&A advisory firm Oaklins, while legal advice was provided by Sorainen.

LitCapital invests in an online P2P/B2C market facilitator

18/08/2022

LitCapital, an independent growth capital fund focusing on investments into high-growth companies in the Baltic region, completed the investment in Sena lt UAB (Horizontal Media, “HM”) HM is currently managing a peer-to-peer (P2P) and business-to-customer (B2C) platform for used books in Lithuania and planning to execute an ambitious business plan aimed at growing the business via expansion into new products and services.

HM is currently developing the platform, with close to 130 thousand users. After the initial investment from the entrepreneur – Per Moller, a new strategy to grow through organic development with heavy emphasis on acquisitions was developed. LitCapital investment will be used to implement the plan.

HM intends to supplement the current platform with more sophisticated functionalities for its users and at the same time will expand into other business areas and new products like vertical classified advertisements segments. The fund’s investment will make it possible to strengthen HM financially, improve the quality of customer service and develop functionalities. It is expected that HM revenue in 2023 will reach EUR 4m.

“The changing market trends and increasing focus on the circular economy means that more products will enjoy a second even a third, fourth or more lives as people become more used to buying used products instead of new ones. Various online platforms that are ready to help people on this pathway are on the course to reap significant benefits. There are additional complementary business segments where we are going to expand. Some acquisitions are planned too,” said Per Moller, co-owner and CEO of HM.

Šarūnas Šiugžda, Founder and Managing Partner at LitCapital, commented: “Current market trends show that HM is very well positioned to function as a backbone for further market growth. That’s why we are glad to work with the company and Per Moller on the quest to become a horizontally integrated media group“.

Law Firm Walless advised the Company during the investment process.

LitCapital announces an investment into EV charging technology designer and manufacturer Elinta Charge

14/07/2022

LitCapital announces an investment into Lithuania-based award-winning electric vehicle (EV) charging technology designer and manufacturer Elinta Charge to support the expansion and development of state-of-the-art EV technology and the company’s vision of durable e-mobility.

Elinta Charge designs and assembles EV charging stations for commercial and residential use. The company provides charging stations for individuals, fleet managers, as well as operators of public spaces, offices, hospitality and other facilities in over 25 countries worldwide. By offering cloud-based software as part of the product, Elinta Charge provides a comprehensive, universal and durable EV charging solution. The company’s mission of enhancing the e-mobility infrastructure within cities without compromising the aesthetics and functionality received public recognition in 2018, when the CityCharge V2 station earned Elinta Charge the prestigious RedDot award for Product Design.

“While Elinta Charge has registered outstanding growth to date, the potential in the EV technology space is still far from tapped. With the growing support of individuals, businesses and regulators, electric vehicles are becoming an increasingly inevitable part of our daily lives. This is an exciting market to be in, and our focus on refined design and sophisticated technology offers a functional yet elegant solution, capable of meeting the needs of even the most discerning clients,” – comments Ignas Mikutis, Founder and CEO at Elinta Charge. “With the financial support of the investors, as well as their expertise and network, we stand ready to embrace the lucrative EV technology market opportunity, simultaneously improving green infrastructure within communities.”

“In addition to the outstanding achievements of Elinta Charge, and their ability to successfully navigate this technologically dynamic market, LitCapital’s investment is motivated by sustainable green mobility trends and the growing overall prominence of electric vehicles. We see high fragmentation within the European electric vehicle market, which is currently entering the consolidation phase. Considering solid market potential, coupled with our strong belief in the engineering talent of Elinta Charge and the outstanding product they have built, we are extremely glad to be able to join as investors,” – comments Šarunas Šiugžda, Founder and Managing Partner at LitCapital.

The investment will be used to expand the team and to bolster the company’s R&D and marketing capacity, thereby supporting expansion in new and existing markets as well as across product groups. The round proceeds will also be used to develop fast DC chargers, an inevitable leap forward for the company as a provider of EV charging technology. Further funding rounds are planned in the future.

LitCapital backs Ondato in its €3.6M seed extension to support rapid expansion of its Compliance-as-a-Service model

27/10/2021

LitCapital, along with previous round investors OTB Ventures and Startup Wise Guys, backs Compliance-as-a-Service startup Ondato in its €3.6M seed extension round, bringing the total amount raised by Ondato so far to €5.6M. Being experienced institutional investors, LitCapital will provide strategic support as the startup continues to scale rapidly. The funds will be used to expand the team with a focus on high-calibre hires to support new market expansion, product development and operations.

Ondato provides highest standard compliance tools to help its clients turn compliance into a competitive advantage. The company offers a multi-functional compliance management suite designed specifically for financial institutions, offering integrated solutions for identity verification, data monitoring, screening, due diligence, risk scoring, and case management, all under a single software as a service (SaaS) model.

“We have grown 4X in the last 10 months and substantially expanded our team size and range of services. The data shows us that there is a need to both deepen and widen the use of KYC services. The additional funds will help us sustain a pace of growth that has beaten our expectations. We are also excited to welcome LitCapital on board to enter our next expansion stage. With their backing as experienced institutional investors, we are well positioned for continued growth and a strong Series A in 2022,” said Liudas Kanapienis, co-founder and CEO of Ondato.

“Ondato has identified a unique opportunity in a booming market and successfully built and marketed a product that goes beyond what any other KYC provider has – a truly comprehensive compliance management software to financial companies making use of the latest technology. We are impressed with what Liudas and his team achieved during such a short period of time, and we are extremely happy to be able to work alongside them,” commented Šarūnas Šiugžda, Founder and Managing Partner at LitCapital, who is also joining Ondato as a Board Member.

Founded in 2016, Ondato has developed software enabling banking institutions to onboard new clients and manage other compliance functions. The company serves over 200 clients in more than 30 countries operating in fintech, banking, insurance, telecommunications, and other related sectors.

Ondato aims to use the additional backing to further focus on product development and customer acquisition in Europe and the US ahead of a planned Series A in early 2022.