Domo is a leading electronics and household appliances retailer in Romania.
|Fund||Romanian American Enterprise Fund and Balkan Accession Fund|
|Fund’s Return||4.4x cash on cash|
|Fund’s Contribution||When RAEF & BAF entered Domo, the Company had Sales of €85 million and 670 employees. At exit date, the Company had more than 1,350 employees for a product range of 3,000 items and sales in excess of € 190 million. After RAEF & BAF investment, the company started a rebranding process that had as objective the revitalization of its market image and a new approach towards the internal organizational culture and the business model. A new retail concept was launched, which proposed stores with large space exposure up to 3000 square meters and a strategic partnership with the German retailer Kaufland was agreed. The development continued outside the borders, with the opening of the first 7 stores in Bulgaria. Domo became the first Romanian specialized retailer in electronics and electrical appliances to expand regionally. Although minority investors in DOMO, RAEF & BAF supported a strategic partnership between DOMO and RALFI, the RAEF consumer finance company, including through a minority shareholding of DOMO in RALFI. “It is not only about the money that we could have raised from many other sources. It is about building a valuable partnership that brought an entrepreneurial company to the level of a corporation that is one of the market leaders in more than one country.” declared Mr. Lorand Szarvadi, CEO and majority shareholder of Domo about RAEF & BAF investment in the Company.|