Enterprise Venture Fund I (EVF), the venture capital fund managed by Enterprise Investors, has inked its first investment in Romania. According to fund officials, EVF will provide EUR 3 million of expansion capital to become a 56 percent stakeholder in Smartree Romania, a local human resources outsourcing company.
“The Romanian HR outsourcing market is expected to grow fast within the next few years from its current very early stage of development. We believe that more Romanian companies will externalize their HR needs in search of better, faster and lower-priced services. With the help of our investment, Smartree will be able to maintain its leading position by expanding its offer and winning new customers,” said Rafal Bator, the Enterprise Investors partner who leads the venture capital team.
“We will use funds received from our new partner to finance a new business line – that of personnel outsourcing – and to develop our payroll and software outsourcing services. We intend to expand significantly in the next five years, through adding new customers and increasing our range of products and services for the existing customers,” added Eric Kish, owner of the HR firm. Smartree Romania provides HR outsourcing services such as payroll calculation and personnel administration to more than 100 multinational and local companies operating in Romania. The company serves more than 30,000 employees each month, using internally developed software. Revenues have been growing at double digit rates over the last few years, and last year sales reached approximately EUR 3.5 million.