Latvian Mapon secures €3 million to fund acquisitions and European expansion

Mapon, a Riga-based fleet management solution provider, has secured €3 million in funding through a bond issue to finance acquisitions and expand its operations in Europe. The funding was attracted from private and institutional investors. Mapon offers fleet management and asset-tracking solutions, maintaining a client-centric approach and achieving a growth rate of nearly 30% over the past five years. The company plans to use the funds to strengthen its position in current markets, invest in opening new branches in Europe, and make similar acquisitions in the future.

With a client-centric approach, professional and committed team, and continuous product development, Mapon aims to maintain its annual growth rate of nearly 30%, which it has achieved over the past five years, constantly beating the market. According to unaudited data, the company’s turnover reached €17.3 million in 2023. This year, it is estimated to exceed €22 million.

Since it was founded, Mapon has experienced substantial organic growth and expanded through strategic acquisitions. Mapon has a branch in Spain, and it is represented in Finland and Denmark. Over the past seven years, Mapon has successfully acquired companies and client portfolios in Estonia, Finland, Lithuania, and Denmark, becoming one of the industry leaders both in the Baltics and Northern Europe.

“We’ll use the funds raised in the bond issue to make similar deals in the future. I’m certain that this opportunity will let us further strengthen our position in our current markets and invest in opening new branches in Europe,” says Andris Dzudzilo, co-CEO of Mapon.

The bond issue was organized in cooperation with Signet Bank, legal advisor COBALT, and collateral agent Eversheds Sutherland Bitans. The long-term bonds with principal repayment at the end of the term provide Mapon with additional working capital to expand its business further. It also enables the company to quickly react to potential acquisition opportunities.

“We’re excited that an ambitious local company is expanding its operations and making acquisitions outside of Latvia, financed by capital market instruments. The IT industry is very important to the Latvian economy, and we’re happy to see that local IT companies choose to issue bonds to expand their growth. The best indicator of Mapon’s financial stability and professional management team is the demand from investors, which exceeded the bonds offered almost three times,” adds Edmunds Antufjevs, Managing Director of Investment Banking at Signet Bank.

The bonds were offered to investors in a private placement and were substantially oversubscribed. Within a year, the bonds will be listed on the Nasdaq Riga First North multilateral trading facility.

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