Hungarian venture capital fund DBH Investment has concluded an agreement to invest €1.5 million in Central Europe On-Demand Zrt, a regional provider of cloud services based in Budapest, the fund's chairman-CEO announced.
“We signed an agreement of €1.5 million with CE On-Demand today, through which we will become a minority shareholder in the company. With our investment, we are confident that CE On-Demand will become the leading cloud services provider in the CEE region in the next few years,” said Sándor Erdei the fund's chairman-CEO.
CE On-Demand is currently present in ten countries across the CEE region and growing. The company provides enterprise-level business solutions, including messaging, collaboration and communication services from the cloud, made available to companies of all sizes, across multiple industry sectors. CE On-Demand is the only company in Hungary dealing solely with cloud services provisioning and having a regional scope of business. CE On-Demand has a partner-focused business model, selling its cloud services primarily through select white-label partners, with over 20 strategic partners in the region and at least one telecoms operator in each market. The proceeds of the investment will be used by the company to fund further capital investments and expansion within the CEE region.
“We are glad to welcome DBH among our investors. We believe in the success of the partnership, since DBH is a company that shares and believes our strategy. With our mutual interest in business management and technological innovations in the CEE region, we like to focus on helping businesses in Hungary and the region by deploying the most modern technologies delivered through the cloud,” said Róbert Budafoki, CEO of Central Europe On-Demand Zrt.
DBH was one of the winners of funds provided under the EU's JEREMIE program, with the EU contributing 70% of the capital for DBH's HUF 5 billion (€17.8 million) fund. This is the fund's fourth investment and the largest so far; €1.5 million (HUF 412.5mn) is the maximum amount allowed in any one company in a single year under JEREMIE rules. The DBH Investment invested a combined HUF 855 million in three technology SMEs. It’s been investing HUF 340 million into a biotechnology company(Nanoform) and inject HUF 200 million into a company that makes healthcare equipment (Proinvest) and HUF 315 min in a company that develops and manufactures industrial automating systems (C-Tech).
In the last 15 years DBH Group played part in several successful capital investment transactions as a consultant and investor in Hungary. The DBH “Business Model” is a service package developed by DBH Group for the small- and medium sized enterprises, which ensures first of all physical infrastructure (serviced offices and serviced industrial facilities), the business services based on it (finance, business administration and project management) and last but not least ensures venture capital for the realization of innovative ideas of mainly Hungarian and international small- and medium sized enterprises. The DBH Investment Venture Capital Fund was founded in September 2008, as the member of DBH Group. The DBH Investment Venture Capital Fund Manager, one of eight fund managers picked to manage some HUF 45 billions as part of the New Hungary Venture Capital Program started by the government in 2009.