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Deloitte announced 50 the fastest growing technology companies in Central Europe

Overall growth rate slows as Deloitte announces the 2015 Central Europe Fast 50 ranking.

  • The average growth rate of CE’s Fast 50 technology companies falls to 560% (2011‒2014) from 698% (2009‒2013). This continues the slide from the high point of 1,026% achieved in 2012.
  • The ranking consists of companies from nine countries. Two companies from Lithuania made the main Fast 50 ranking. For the first time in the history of the project, two Lithuanian companies entered the additional Big 5 and Rising Stars categories.
  • 38 companies are in the ranking for the first time, including those in first and second places; three move up and eight move down.
  • Software (29) and media (14) companies dominate the ranking.

Nine countries contribute companies to this year’s Fast 50 ranking: Poland (12), Romania (10), Croatia (8), the Czech Republic and Slovakia (5 each), Hungary (4) and Bulgaria, Lithuania and Serbia (2 each).

Three out of the top five places in the 2015 Deloitte CE Technology Fast 50 report, which ranks the companies showing the strongest revenue growth rate between 2011 and 2014, are new entries to the listing, including those in the first two places. However, the average growth rate of all companies in the Fast 50 has fallen from 698% to 560% over the last year, continuing the slide since the peak reached in 2012 of 1,026%.

Top place in this year’s ranking goes to Czech software company Simplity , with its five-year revenue growth rate of 1971%. Interestingly, Simplity was sixth in last year’s Rising Star category (see below), when it was still too young to feature in the Fast 50 ranking itself. Next is secure mobile payments company Skycash Poland with 1,665%, while third place goes to last year’s overall leader, Hungarian online real estate business Szallas.hu. Its 2015 growth rate of 1,209%, while still very fast, is substantially down on last year’s high point of 2,259%.

Another new entry comes in at number four in the shape of custom-applications and document-management specialist BSP Applications (1,004%), tied with Polish web-development agency Netguru, which has moved up from fifth place from last year despite a reduction in its revenue growth rate from 1,386% to 1,004%.

Deloitte Central Europe Fast 50

The success of Lithuanian companies

Two companies from Lithuania made the list this year: Ruptela UAB (36th position) and nSoft UAB (40th position). Telecommunication company Ruptela, providing innovative transport monitoring and management services, has fallen from 7th position to 36th in comparison with the last year’s ranking. Although a drop of this company in ranking is obvious, Ruptela remains the sole Lithuanian technology company occupying the top place in this year’s ranking with its growth of 342%.  

Information technology solutions company nSoft moved up by five positions to the 40th place in the TOP 50 ranking. It represents an increase of 297%.

“While rapidly expanding business, one of the main challenges we have faced in recent years was to maintain and ensure a high level of quality, management and services provided. Of course, the search for skilled, experienced and suitable for the company employees is an ongoing and continuous challenge”, says Andrius Rupšys, the Managing Director of Ruptela UAB. “I am convinced that both our employees and creation of high-quality solutions, as well as focusing on customer are the key factors, which contributed to our competitive advantage in the market“, adds Mr Rupšys.  

“It is gratifying to see that Lithuanian companies successfully retain its positions in the Technology Fast 50 lists for several successive years. This year, according to the Fast 50 corporate rate on a per capita basis, Lithuania is placed in the top three positions, descending only to Croatia and Slovakia,” comments Marius Stalenis, Assistant Director of the Business Advisory department at Deloitte. “Moreover, it can be noted that only 12 businesses, among which two companies are from Lithuania, made the list of this technology company ranking for two or more years in a row. It shows that these companies are moving towards a mature business“, concludes Mr Stalenis. 

Rising Stars Category

Special categories

For the first time, Lithuanian technology companies made the list of Rising Stars and Big 5 categories in this year’s ranking.

The Rising Stars awards go to those companies that are too young to feature in the main Fast 50 report, but have recorded such spectacular growth rates over the last three years that they are almost certain to be included soon. For the first time, Lithuanian technology company INVENTI, which is a cloud solutions creator, made the list of Rising stars category with its growth of 271% (7th position in the Rising Stars category).

The Big Five category rewards those companies that, although fast-growing in their own right, are too large to compete directly on revenue growth terms with smaller businesses in the Fast 50. Lithuanian e-commerce business Pigu, which entered this category for the first time, comes second (235%) and concedes only to Romanian software company Insoft Development & Consulting (577%).

Assistant Director of the Business Advisory department at Deloitte Marius Stalenis says that INVENTI’s success is certainly encouraging. “Of course, we look forward to see the aforementioned company, as well as other Lithuanian businesses in the Fast 50 ranking list in 2016”, adds Mr Stalenis.

“An achievement of the company Pigu can be described as impressive ‒ in a growing, but highly competitive e-commerce market a large company managed to grow much faster than a majority of competitors. This success proves that even large companies are able to adapt in a flexible way to the market changes and growing needs by gathering a strong management team when implementing a stated strategy and meeting its objectives”, commented Mr Stalenis.

According to Adam Chróścielewski, Technology Fast 50 programme leader Deloitte Central Europe, “Although average growth rates have slowed from last year, 560% is still enormously rapid in comparison with businesses from any sector other than technology. The fact that the ranking is headed by a company that was a Rising Star in 2014 illustrates perfectly what can be achieved by young companies whose services really match the zeitgeist. However, the challenges of managing growth for such businesses are intense and very real. That’s why I often feel the greatest admiration must be extended to those in the Big Five category – companies that are still growing enormously fast but have also successfully attained the scale that younger and smaller businesses aspire to.”

Big 5 Category

About Ranking

The Central Europe Technology Fast 50 ranks the region’s fastest-growing tech companies, based on revenue growth over a four-year period. For the 2015 ranking, revenues from 2011 to 2014 were analysed.

The main category

Companies must meet a number of criteria to be considered eligible for the main CE Fast 50 ranking:

  • Annual revenues of at least €50,000 in each  year between 2011 and 2014.
  • Headquarters in a Central European country (Albania, Bulgaria, Bosnia & Herzegovina, Croatia, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Macedonia, Moldova, Montenegro, Poland, Romania, Serbia, Slovakia or Slovenia).
  • Develop or manufacture proprietary technologies or spend a significant amount of capital on R&D.
  • Have an ownership structure that excludes majority-owned subsidiaries of strategic entities.

Winners are then selected by ranking their revenue growth over the five years from 2011 to 2014.

Rising Stars Category

Deloitte ranks companies that show great potential but are too new to meet the minimum of five years in operation criterion for the main category. Companies must have been in operation for between three and five years and to have exceeded €30,000 in each of the last three years (2012 – 2014). Otherwise, the same criteria apply as for the main Fast 50 ranking.

Big 5 Category

This ranks large companies that have achieved extraordinary growth over the last five years. Eligible companies must meet the same criteria as the main Fast 50 ranking, with the exception that annual revenue in the final measured year (2014) must exceed €25 million.

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