RFID developer Confidex receives EUR 5 million investment

Investments in companies - 1.2.2010

 

Government-owned investment company Finnish Industry Investment Ltd, Aura Capital Oy and previous owners have invested a total of MEUR 2.7 in Confidex Oy, which develops contactless RFID technologies. An additional MEUR 2.3 loan was granted by Finnvera and Sampo Bank Plc.

 

Confidex’s main business areas include contactless ticketing for mass transportation applications, durable high-performance RFID tag solutions for tracking returnable transit items in logistics and in asset management applications in industry and information technology.

 

Confidex has customers in retail and logistics, industry, aviation, defence and mass transportation – all areas that require goods, transactions or people to be monitored and secured. Customers in Europe, North America and Asia benefit from increased efficiency in business processes, a decrease in manual labour and reduced technology prices. Demand has also grown due to new legislation and the increased need for business analysis.

 

“Our revenue tripled in 2009. The new funding will be put towards increasing our production capacity, enhancing our brand and developing new business areas. At the moment we are developing, for example, wireless sensor solutions,” explains CEO Timo Lindström.

 

“We are opening a new, bigger production facility in Guangzhou, China, on 5 February, as the old facilities are no longer big enough. Confidex was the first western RFID tag producer to start operations in China in 2006. Our own production guarantees seamless delivery, speed, flexibility and the highest quality.”

 

China is expected to become the world’s biggest RFID market, in which wireless identification projects will be important for numerous consumer and industrial products.

 

“The entire RFID market is expected to grow strongly. Confidex’s progressive technologies, strong brand and large existing customer base gives the company a competitive advantage,” says Aura Capital’s Managing Partner Ari Siponmaa.

 

“Confidex is in an interesting phase of growth, and we like to invest in Finnish companies that are capable of major international success,” comments Investment Director Jussi Hattulafrom Industry Investment.

 

Confidex products are designed at the company’s base in Tampere, Finland. Production and deliveries take place from facilities in Guangzhou, China. Founded in 2005, Confidex has 90 employees and generated net sales exceeding MEUR 10 in 2009.

 

Confidex Oy is the world’s leading supplier of high-performing contactless ticketing and RFID tag solutions and services to make supply chains, transactions and authentication of goods and people more efficient and secure. Confidex’s global network of over 100 partners serves customers representing a broad range of industries in Europe, North America and Asia. www.confidex.net

 

Aura Capital Oyis a private venture capital firm founded in 1997 that invests in start-up and early stage companies with exceptional intellectual property and growth potential. Aura Capital typically invests in areas such as software, IT services & mobile technology, biotechnology, nanotechnology and the commercialisation of inventions. http://auratum.com/

 

Finnish Industry Investment Ltd is a government-owned investment company whose mission is to promote and stimulate Finnish business, employment and economic growth through capital investment. Finnish Industry Investment invests in growth companies, directly and through funds, together with private co-investors.Capital investments are needed for financing the growth of investee companies, internationalisation, spin-offs, major industrial investments, and sector and corporate restructurings. The targets are in all sectors. The investments of Finnish Industry Investment amount to some MEUR 620.
www.industryinvestment.com


More information:

 

- Timo Lindström, CEO, Confidex Oy
tel. +358 40 525 3114, timo.lindstrom (at) confidex.fi

 

- Ari Siponmaa, Managing Partner, Aura Capital Oy,
tel. +358 41 448 6461, ari.siponmaa (at) auratum.com

 

- Jussi Hattula, Investment Director, Finnish Industry Investment Ltd, *
tel. +358 400 669 955, jussi.hattula (at) industryinvestment.com