Domo Retail

Short Description

Domo is a leading electronics and household appliances retailer in Romania.

Facts

Fund	Romanian American Enterprise Fund and Balkan Accession Fund
Sector	Retail
Country	Romania
Entry	July 2004
Exit	September 2007
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.