On operating results
In 2023 Capitalia reported a turnover of EUR 1.45 million and a profit of EUR 2 thousand. The annual revenue grew by almost 16% last year, however, due to additional costs in transitioning to licensed operations the net profitability was impacted. While in October we again observed low activity it started picking up in November and in December we managed to issue a solid monthly funding amount of EUR 2.2 million. 

On key events
In the last quarter of 2023, we managed to issue a funding amount of EUR 4.5 million (EUR 5.3 million in the third quarter of 2022). Among the financed businesses during this period were, for example, such companies as Ozermedia, SIA (manufacturing and wholesale trade), Digital Mind, AS (information technologies), and JMD, SIA (real estate). 

In the last quarter, we have successfully received the European Crowdfunding Service Provider license from the Bank of Latvia. We also completed internal reorganization as a result of which the Capitalia SE and Capitalia Fund Management SIA have become daughter companies of the Capitalia Investment Holding AS. The reorganization has been initiated due to the licensing requirements of the crowdfunding platform operations.

In alternative fund management, we have made 7 new investments from our cost-efficient Baltic bond fund and acquired bonds of made 7 new investments: Civinity AB (building maintenance and engineering solutions company), Eco Baltia (waste management company), Eleving Group (financial technology company), Capitalica (asset management company), iCotton (cotton products manufacturing company), Modus Grupe (renewable energy, mobility services, auto business provider), Omberg Group (real estate management company). Our venture capital fund has made two new investments in an Estonian real estate rental management platform Rendin and in Giraffe360, which already was part of the Fund’s portfolio. The last quarter marked the end of the investment period of the Fund.

On plans for the next quarter
The first quarter of the new year started with strong business financing activity and we expect it to continue this way. We continue implementing various changes on our platform to ensure compliance with the European Crowdfunding Service Provider requirements. We are also building up our sales team and preparing for stronger outreach both to potential borrowers as well as to new investors.   

The full financial report is available after login on our Investor relations page (available for logged in users).