The challenge for exporto

Achieving a capital increase without diluting shares

At the end of 2022, exporto began with its strategic financing planning for the upcoming year. The startup aimed for a capital increase in two steps. Henning Kasdorf, exporto's CFO, emphasizes, "We initially kept our options open, considering debt, equity, or a combination of both, in order to thoroughly assess the most suitable approach."

For the initial round of financing, the exporto team swiftly identified a conventional solution: to secure the required liquidity for operational activities, existing investors contributed additional equity. In return, however, the company had to sell shares. 

The second capital increase was intended to achieve the following goals:  

• Further expand the existing customer business in Great Britain, 
• to finance the market entry in France and 
• revise its own market and marketing presence. 

However, having already undergone equity financing, Henning and the founding team were determined to steer clear of any additional capital dilution.  "We therefore looked around for alternatives and explored the possibilities of debt financing," says the exporto CFO. 

During their research, Henning and his team quickly came across re:cap and venture-debt-like financial instruments:

"re:cap's professional approach was not the sole factor that convinced us. Equally significant was their meticulous screening and in-depth research into our business model, as well as the specific challenges associated with it. This thorough evaluation gave us utmost confidence in the high probability of successful implementation."

The solution

Flexible financing that addresses the specifics of the industry and exporto's business model

As a strategic cross-border partner, exporto offers e-commerce customers a comprehensive end-to-end solution that includes physical parcel shipping, returns processing, and customs and tax handling for their business abroad.

Due to the close integration with e-commerce customers and the handling of parcel volumes, there is a similar seasonal business pattern, generating the largest revenues especially in the 4th quarter.

"The re:cap team understood in a very short time that we generate seasonally fluctuating, but in total very predictable cash flows. Especially for this ‘seasonal MRR’ we found a very pragmatic and partnership-based solution. This ultimately led to an offer with a fair risk ratio."

Within a few weeks, exporto successfully obtained a financing line precisely matching the company’s requirements: further financing for international expansion and at the same time no dilution of the company's shares.