Deals round-up: VENTURE CAPITAL – InnovationsKapital readies Kreatel for IPO

Swedish telecommunications company Kreatel Communications has raised SKr 105 million (EURO12.6 million) of pre-IPO funding, expanding its shareholder base in the process. Existing shareholder InnovationsKapital led the funding round, bringing new investors ABN AMRO (Alfred Berg), SEB Fretagsinvest, Investment AB Bure and Allmnna Pensionsfonden Sjtte Fondstyrelsen.

Kreatel is growing strongly. Its sales last year reached SKR 54 million, an 86 per cent increase over the previous year, and its profits grew to SKr 2.1 million. The company, which develops and markets telecommunications and datacommunications solutions for fixed networks and is also active in mobile telephony and broadband networks. Kreatel, which hopes to be ready to hold an IPO within the next year, is aiming to establish itself as a leading supplier of service gateways.

The capital raised in the latest funding round will be used to develop new service gateways for broadband services and to establish Kreatel subsidiaries in three other European countries to ramp up its marketing effort.