Deloitte announced 50 the fastest growing technology companies in Central Europe
Tech growth rates increase as Deloitte announces the 2016 Central Europe Fast 50 ranking
The Deloitte Technology Fast 50 in Central Europe is a programme that recognises and profiles fast growing technology companies in the region. The programme, which is now in its 17th year, ranks the 50 fastest growing public or private technology companies.
Eleven countries contribute companies to this year’s Fast 50 ranking: Poland (17), the Czech Republic (7), Croatia (6), Slovakia (5), Hungary and Romania (4 each), Lithuania (3) and Bosnia & Herzegovina, Bulgaria, Serbia and Slovenia (1 each).
- The average growth rate of CE’s Fast 50 technology companies jumps to 1057% from 560% in 2015
- Last time the average growth surpassed 1000% was in 2012 (1,026%)
- Companies from 11 countries are represented, including 3 from Lithuania
- 43 companies are in the ranking for the first time, including those in first, second and third places; one moves up and six move down
- Companies representing IT & Digital Solutions (41) dominate the ranking
- 2 Lithuanian companies made the list of Rising Stars category while other 2 Lithuanian companies made the list of Big 5 category
2016 Central Europe Fast 50 ranking
The pace of change among Central Europe’s fastest-growing technology companies is faster than ever, with average growth rates almost doubling from a year ago. Nine of the top ten places in the 2016 Deloitte CE Technology Fast 50 report, which ranks the companies showing the strongest revenue growth rate between 2012 and 2015 are new entries to the ranking. In total, 43 companies were new entrants, emphasising the dynamic rate of change affecting the region’s burgeoning technology companies.
The entire top five entrants in the ranking are new to the Fast 50 this year. First place in the 2016 ranking goes to the Polish tech marketing hub and software business Codewise, whose amazing three-year growth rate of 13,052% eclipses the still highly impressive 4,555% it recorded in 2015 when winning the Rising Stars award. Unsurprisingly given this growth rate, Codewise also won the Big Five award this year, an exceptional achievement for a company that just 12 months ago was too young even to feature in the main Fast 50 report.
In any other year, the second-placed CodiLime software business, also from Poland, would have dominated proceedings with its exceptional three-year growth rate of 5,038%. Interestingly, CodiLime also placed second in last year’s Rising Stars category. Third place in the Fast 50 goes to Czech IT services company Dataspring, with its three-year growth rate of 3,129%. Slovakia’s JUMP software house was fourth (1,965%) and fifth place was claimed by another software business, NSoft (1,760%), this year’s only entrant from Bosnia & Herzegovina.
The only company to retain a place in the top ten from 2015 was the ninth-placed High Tech Engineering Center from Serbia (1,109%), which slipped from the seventh place it achieved last year.
The success of Lithuanian companies
Three companies from Lithuania made the list this year: Exacaster UAB (36th position), INVENTI UAB (44th position) and MEDIA INOVACIJOS UAB (45th position). A big data predictive analytics technology company Exacaster UAB, developing advanced machine-learning algorithms and software platforms as well as products that address key sales and marketing challenges, claimed the top place in this year’s ranking among Lithuanian companies with its growth of 407.62%.
“Our secret of success is patience, long-term view and customer value orientation. The field of predictive Big Data analytics is going through hype cycles right now, however we are in this business already for 5 years and can see where it will go in the next 5 years. Analytics is fundamental to companies’ financial success. When Big Data hype ends analytics will still be in high demand. We're here to make such analytics more efficient and effective in a sustainable way. The biggest challenge we face is to accelerate growth of our employees’ talents and productivity. Fast growth means everyone must learn very fast so that we can do more every quarter with the same team”, said Šarūnas Chomentauskas, CEO at Exacaster UAB.
Lithuanian technology company INVENTI UAB, which is a cloud solutions creator, took 44 place with its growth of 367.17% (7th position in the Rising Stars category last year). 45 place was taken by Lithuanian web design and development agency MEDIA INOVACIJOS UAB (362.77%).
According to Marius Stalenis, Assistant Director of the Business Advisory department at Deloitte, “It is gratifying to see that the number of Lithuanian companies participating in the ranking has been growing for several years in a row. Most of these companies achieved the impressive growth by presenting their products or services in international markets. This is another proof that we have excellent professionals and active entrepreneurs who are able to find innovative solutions and be competitive the whole world. By the way, according to the number of companies that were willing to take part in the competition, Lithuania was one of the most active in the region, which is a great indication that next year we can expect even greater results”.
The Rising Stars award marks out those companies that are too young to feature in the main Fast 50 report but have delivered such eye-catching growth since their foundation that they are likely to feature in the main report in years to come. The winner of this year’s Rising Star award is Lithuanian smart device company Deeper UAB with a three-year growth rate of 3,631%. Second is Phenicoptere, (2,370%) a Polish company that has developed a reusable make-up remover that uses water only. And third is Hungary’s IncQuery Labs, a provider of B2B technology tools, with a three-year growth rate of 1,700%. 10th place in the Rising Stars ranking was taken by Lithuanian publisher and developer of casual and free-to-play mobile games for kids and toddlers INVENIS UAB (669.57%).
"From the beginning, our international market orientation shaped the global challenges. To overcome these challenges our team of professionals had to use the intelligent and high-quality products, innovative marketing and sales solutions. This is what has led to our company’s growth. Modern organizational culture and work environment, open to ideas, innovations and non-standart solutions, provide the opportunities to develop and grow at the same pace in the future", - says Roland Sereika, CMO at Deeper.
The Big Five category is for fast-growing larger companies whose scale makes it difficult for them to compete in revenue growth with the smaller businesses in the Fast 50 ranking. That makes it all the more remarkable that Codewise headed both the Big Five listing and the Fast 50 ranking. Its astonishing 13,052% growth rate over three years dramatically exceeds the more-than-respectable 484% achieved by second-placed Slovakian software company Aliter Technologies. Third place was taken by Pigu UAB (171%), the Lithuanian online retailer that was runner-up in the Big Five in 2015. Lithuanian biomass incineration technology leader Enerstena UAB won 4th place in the Big Five category (126.47).
This year, a new category for the Most Disruptive Innovation (MDI) was introduced. This award singled out a business that might not have made the ranking but is pioneering highly disruptive new ideas or technologies. The first such award was won by Poland’s HiProMine, which is using insect-based technologies in areas including waste management and the production of food, feed and fertiliser.
A positive environment for growth
According to Magdalena Burnat-Mikosz, Technology Fast 50 programme leader Deloitte Central Europe, “If you wanted proof that the business environment in Central Europe has been positive over the last 12 months, the average revenue growth rate of 1,057% over the last three years delivers it. This has almost doubled from 560% in 2015, showing that there is a whole new generation of dynamic young businesses coming through to challenge and complement the established order. I have to highlight the astonishing performance of Codewise, whose own growth rate might have slightly skewed the average all by itself. To move from Rising Star winner one year to Fast 50 leader and Big Five winner the next is a true achievement. I will follow its progress with interest, along with the other top performers in all categories including the winner of the inaugural MDI award.”