Navitasoft closes investment deal with Blue Planet Foundation

“We digitalize energy” is our slogan, and the fact that our company - in addition to steadily growing - has been profitable ever since we started is testament to both the quality of our services and our commitment to the energy transition. In order to realize our true business potential and continue to live up to our motto, we recently received a considerable investment that will enable us to increase our capacity and bring new services to the energy market.

On March 20, 2022 we signed an investment deal with Blue Planet Climate Protection Fund, a capital investor specializing in seed funding - owned and operated by Blue Planet Foundation, a Hungarian non-profit organization. The investment will ensure that our energy business software solutions not only streamline our clients’ IT processes and increase the efficiency of their business operations, but also contribute to the clean energy transition.

Our founder and CEO, Ákos Füzi, shared his thoughts about the capital investment deal.

Why did Navitasoft look for a financial investor?

We have been working on a project basis for 14 years. What that means is an energy market player either commissions the development of some custom software or opts for one of our existing off-the-shelf solutions and finances the project. However, having project-based cash flow restricts product roadmap development, and we often need to create features that are not financed by individual clients. As decentralization increases, more and more small players are entering the energy market: solar panels, wind turbines, heat pumps and so on. Since these players need ready-made software solutions rather than bespoke ones, we have to adapt to energy market trends in order to meet their needs. And that costs a lot of money.

Why did Navitasoft choose Blue Planet Foundation?

Blue Planet Foundation is a nonprofit, committed to raising environmental awareness within and beyond the borders of Hungary. Just like us, they advocate climate protection and corporate sustainability. So, we have the same key values. Besides, they have an excellent network in the environmental services sector, which allows us access to new opportunities and to keep abreast of the latest trends. And as an investor with a 24.75% share as well as a seat on our board of directors, their financial expertise can help us improve our business fundamentals and provide guidance through the financial challenges of our next growth phase.

What does Navitasoft aim to achieve with the help of this investment?

The amount - HUF 1.2 billion, or around 3.2 million euros - will go toward developing our own cloud-based application, which will enable all energy devices to be connected to the European energy markets. This would give the owners of those devices the opportunity to earn some money on the markets. Creating what we call an Energy Market of Things - modeled on the Internet of Things - is an even more ambitious, and more expensive, venture that we’re planning to undertake. We’re looking for additional investors to finance it.

What are some of Navitasoft’s long-term plans?

Given the volatility of energy markets and the current geopolitical situation, it’s difficult to plan very far ahead. Last fall, when Navitasoft was featured on the list of 50 successful Hungarian businesses  published by the Budapest Stock Exchange, I said that the company was considering going public. This is now our primary goal for the medium term.

 

Traditionally, the energy sector is a challenging one for investors and times are especially hard for them right now, considering the circumstances Ákos Füzi mentioned above. It is clear, however, that the sustainable innovations introduced and encouraged by digitalization can help the transition to cleaner energy systems and a greener future. This is why deals such as the one agreed by Navitasoft and Blue Planet Climate Protection Fund are so important: in addition to both parties benefiting, the planet also wins. This is how Gábor Dányi, the Fund’s Managing Director, has put it:

“Together with Navitasoft, we’re changing the conversation about clean energy. Their broad range of software solutions and services has been accelerating digitalization within the energy sector for well over a decade. Now that we have joined forces, they will be able to increase their financial and strategic flexibility too, which can ensure that they continue to provide industry-leading solutions, while further boosting the transformation to a sustainable green future. We couldn’t be more excited about our shared vision and very much look forward to supporting Navitasoft’s future growth.”

Speaking of growth, with a very exciting project in the works, we are planning to grow our team. Employees sometimes have a feeling of uncertainty about their future when a new investor appears: they worry that it could lead to a heavier workload or a major restructuring. Our staff can rest assured that neither will happen at Navitasoft. Instead, we are going to continue following our path and expand our business by hiring dedicated and talented professionals who share our vision.