Continest raises HUF 2.4 bln in capital
Continest Technologies has received a total of HUF 2.4 billion in capital investment from three domestic venture capital fund managers to support its growth plans, according to a press release sent to the Budapest Business Journal.
The Székesfehérvár City Fund and Hiventures, a member of the MFB Group, each made a HUF 1-1 bln capital injection to become minority shareholders in the company, which develops and manufactures folding container technology.
Continest's current venture capital investor, Takarék Venture Capital Fund I., invested a further HUF 400 million in the company.
The capital injection will support, among other things, the establishment of Continest Factory's second manufacturing unit in Székesfehérvár, as well as the expansion of its international activities and its entry into new markets.
Founded in 2019, Continest Technologies achieved a turnover of more than HUF 820 mln in 2020, and this indicator increased to HUF 1.6 bln in 2021.
"The global market developments of recent years and the increasing demand for sustainable development have led to global demand for temporary infrastructure solutions. That is why we see the next few years as being the decisive years for foldable modular container technology. Together with our new and existing capital investors, we have the opportunity to scale up and enter new markets with a very stable financing base, further contributing to domestic exports. The construction of our number two plant, which will be inaugurated in September this year, will open up the opportunity to produce in even larger volumes and to further develop our manufacturing technology," said Dániel Tegzes, strategic director of Continest Technologies.
"Our mission is to contribute to the development of domestic businesses. The high professional quality of Continest's products, its professional management, and the company's performance so far have been absolutely convincing for us. We are confident that the capital raise will help Continest to further expand and achieve international success", added Ákos Benke, CEO of Focus Ventures Capital Fund Management.
Bence Katona, CEO of Hiventures, said, "Financing the intensive growth that Continest has achieved may still be too high a risk for most market participants, but the capital provided by Hiventures has enabled the expansion of the plant. As a member of the MFB Group, our goal is to ensure that young companies with similar success can continue to grow uninterrupted. In addition, Continest is a particularly good example for manufacturing start-ups of how to go from zero to billions in sales in a few years."
"Takarék Venture Capital Fund I., which previously raised capital in Continest, will remain the dominant shareholder, and in view of its long-term investor interests, it will convert HUF 400 million of equity loan into equity in the current investment round, thus contributing to Continest's further results and growth," added Marcell Horváth, CEO and investment director of DBH Investment, the manager of Takarék Venture Capital Fund I.
In 2021, the company inaugurated its first container factory in Székesfehérvár, which is currently capable of producing 1,000 folding containers per year and provides jobs for 53 employees. In the future, the Continest factory will use Industry 4.0 solutions, and the company's state-of-the-art sheet metal plant and welding hall will be supported by robot technology for efficient production. But in addition to robotics, the company is also planning a significant expansion of its workforce, with nearly 50 new jobs to be created by 2022. The second plant will also offer the possibility of in-house surface treatment of containers, and the annual production of containers will reach 3,000 units.
The company is currently working on developments such as the fully equipped kitchen container, cargo containers, which are also suitable for freight transport, and which, due to their foldable nature, make the process of freight transport more cost-effective and sustainable. Another ongoing project is the vertical farm container, which is being developed in partnership with Green Drops Farm and Baptist Relief Services to create a hydroponics-based crop production system without the need for topsoil.
In addition, Continest is continuously developing its containers for medical and defense use. In May 2022, the Hungarian Defence Export Agency signed the first cooperation agreement with the company, under which the military technology agency will assist Continest in international marketing and distribution.
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