Norwegian-Bulgarian document and records management scaleup Documaster has raised a €13M private equity round at €62.4M valuation.* This news follows the company’s growth to €4M in annual recurring revenue (ARR), coming from over 300 customers, mainly in the Nordics. Part of the new capital has already been used to fund two strategic acquisitions while the rest will be used for product portfolio expansion and organizational restructuring. Headquartered in Oslo, Documaster currently has its biggest R&D hub in Sofia.
“The office in Sofia will continue working exclusively on all components targeting our current and prospective public sector customers, while the development of everything tailored toward the private sector, as we call it, will be moved to Norway. Both teams are expected to grow,” Georgi Vasilev, Country Manager Bulgaria at Documaster shared with The Recursive.
From B2G in the Nordics to Telcos & Corporates Globally
It all started back in 2014 when Yngve Tvedt, Christian Lundvang, and Dimitar Ouzounov started the project with the goal to help public sector organisations address the growing challenge of efficient e-archiving. In short, they built a centralized engine for organizations to tag, store and find documentation from different sources.
Within the next 5 years, the venture’s SaaS solution was adopted by more than 200 clients, including a number of local municipalities. Recently, the team started paying more attention to the corporate segment and has announced collaborations with big telco businesses like Telia, the second biggest mobile services provider in Norway and Mexico-based Torrecom.
The pandemic has developed the corporate opportunity for Documaster as well. “Due to the fact that a lot of people are still working remotely, it is more important than ever to ensure that business-critical documentation is easily reachable from outside the office,” Vasilev tells us.
Accelerating growth with acquisitions
To further boost its growth, Documaster has completed two acquisitions deals – with Infoworker and Comprima Software.
“The purchase of Infoworker gives us very good competence in Microsoft Office 365. 90% of our customers use Office 365 and that makes it extra important for us to be a leader in that system, Anders Johnsen, CEO of Documaster says.
Comprima Software, on the other hand, is a major supplier of e-archives to the Swedish public sector, including 100 municipalities. “We are already present on the Swedish market with our office there. With this acquisition we increase our share and scale of operations. Documaster will be the largest supplier of e-archives in the Nordic region.”, adds Johnsen.
Documaster’s priority for the upcoming 6-12 months will be to ensure a seamless transition and to find the optimal collaboration between the organizations. According to Vasilev, a decentralized approach would be the most likely option, leaving enough leeway to every team to further develop their offerings, sharing resources only where it is necessary and beneficial to do so.
*The numbers shared by the company were in Norwegian krone as follows: NOK 135M raised at NOK 650M valuation. ARR for 2020: NOK 41.5M. The amount in EUR is at exchange rates as of 17.08.2021.