Romanian app producer Zitec has attracted an investment of over EUR 1.7 million from eMAG, the largest online retailer in Romania, owned by South-African investment fund Naspers. The company will use the money to accelerate its development, open new offices in other cities, and set up a department specialized in EU funds and grants.
The capital injection, which will take place through a series of transactions, took into account Zitec’s potential for growth in the software development and online marketing areas, as well as the company’s investments in other startups. Zitec owns stakes in Zipongo.com (SUA), cosQuare.com (Olanda), and the HAC!BD comic book publisher (România)
Alexandru Lapusan, the CEO and founding partner of Zitec, said that the company will remain independent after this infusion of capital, and that the management will remain the same as before the transaction. Dante International, the local company that owns the eMAG brand, will hold a significant minority stake in Zitec.
Zitec has been growing constantly in the last five years, its turnover reaching EUR 4 million in 2016. The operating profit EBITDA margin reached 12%. Some 40% of the company’s revenues come from external clients.
Local law firm bpv Grigorescu Ştefănică assisted Zitec in the transaction with Dante International.
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