Expandeco

Investment in Expandeco – a specialist provider of critical infrastructure for the international growth of e-commerce companies. Expandeco is now itself expanding through the acquisition of a profitable international logistics company to increase its range of logistics services.

Expandeco, via Crowdberry, brings a rare opportunity for private investors in which they can participate in the growth investment of a company via funding its acquisition of a target company.

Such transactions are normally only available to private equity funds. The protective provisions of the investment include a liquidity preference for a preferred return of capital with a 15% IRR.

Become a co-owner of Expandeco and take advantage of an investment opportunity that typically only investment funds have access to. Crowdberry is now opening up these unique opportunities to private investors.

What does Expandeco need the capital for?

Expandeco will use the funds from the investment to buy an international logistics company, which will significantly expand its offer of logistics services for customers, especially e-shops.

An international logistics company with almost 15 years of history that provides collection and delivery of shipments to 27 European countries for more than 1,200 companies. It is an established and profitable company with which Expandeco has been cooperating for a long time and the companies have a close relationship. In 2023, this logistics firm had revenues of €12.4 million and EBITDA of €1 million.

The acquisition will enable the establishment of a European platform for the provision of a full range of services, including logistics solutions, customer support and marketing services for e-shops.

Expandeco will be able to increase the turnover of both companies combined from €15 million to €30 million by 2028 with an EBITDA margin of 10-12%. The acquisition is the result of good business relations between the two companies in a mutually beneficial transaction. Expandeco will gain new clients – 500 potential customers identified to complement its current 300+ own customers, and Expandeco will expand its portfolio to include international logistics.

In addition, the systems of both companies are currently already well linked and integrated, which will make the whole merger process smoother.  

• Both companies have been in business for more than 10 years and are generating profits.
• After the market cooled in 2021-23, the next 5 years are expected to see year-on-year growth averaging +10%.
• Expandeco's founders have successfully completed an exit in the past: selling acompany (payment gateway) to a private equity fund. Expandeco will also acquire an experienced and motivated logistics team, adequately incentivized through an ESOP (employee stock ownership tied to KPIs).
• Exceptional opportunity to invest in a transaction usually only available to private equity funds. Both companies are already profitable, generating positive cash flow,and have minimal debt. Expandeco, once the new company is integrated, will be a compelling acquisition/sale target in a 3- to 6-year time horizon.
• The market is currently consolidating – there are a limited number of similar targets and valuation multiples (EV/EBITDA) are attractive. Investment protection provisions include a liquidity preference for preferred return of capital with a 15% IRR.

Expandeco provides comprehensive services such as customer support in local language, translations and localization, returns management and other services (local virtual addresses and bank accounts, phone numbers). Expandeco's IT development team is constantly developing and innovating its own CRM platform, which is now connected to more than 300 e-shops across Europe. The company has very limited competition. In 2023, Expandeco had revenues of €2.7 million (+23% y-o-y) and EBITDA (adj.) of €0.5 million.

Expandeco has helped more than 500 international projects expand, including those from well-known brands.

The founders Tomáš Vrtík and Miroslav Kráľ are experienced professionals in the field of e-commerce.

• Tomáš Vrtík – a visionary leader who has established himself as a significant personality in the Czech and Slovak e-commerce market. Under his leadership, Expandeco, since its founding in 2014, has steadily grown and is now in 20+ countries.
• Miroslav Kral – his entrepreneurial journey began with the founding of several e-commerce businesses such as Tickpo.sk, which he successfully sold after a year of development, or the payment gateway BESTERON, the majority share of which was sold to a private investment fund.

Expandeco will also gain an experienced and motivated team from the logistics industry with the acquisition of the target company. The target's CEO and management will remain active in the management after the buyout and will be adequately incentivised through ESOPs (employee stock ownership linked to KPIs).