The European Investment Bank (EIB) is providing inRiver AB, a Swedish developer of cloud computing-based product information management software (PIM), with EUR 8 million in financing to boost the company’s competitiveness in a fast-growing market. Thetransaction comes under the European Growth Finance Facility which benefits from the European Fund for Strategic Investments (EFSI), the heart of the Investment Plan for Europe.
Product information management software is a crucial tool to overcome the scale and complexity digital channels create for companies operating in the retail sector. The demand for such software is steadily increasing. The EIB financing enables inRiver to invest in research and development, expand its market reach, and further grow its customer base, which includes international blue chip companies, such as Volvo, Intersport, Fujifilm, Skullcandy, and others.
“Access to financing for fast-growing and early-stage companies is key to fostering competitiveness and digitalisation in Europe,” said Romualdo Massa Bernucci, Director for EIB lending in the Nordic countries. “We are glad to support inRiver’s RDI and growth strategy; it’s companies like this that help to enhance Europe’s position as a major technology supplier and that create quality jobs across the continent.”
“Being the first provider of cloud-based product information management capabilities has led to very strong growth for inRiver, both in Europe and North America,” said Niclas Mollin, inRiver’s CEO. “This financing will allow us to further accelerate our growth and deliver even greater capabilities to marketing teams worldwide.”
The deal with inRiver is special in that it makes use of the EIB quasi-equity product, which had no market precedent prior to 2015. Quasi-equity combines the advantages of a long-term loan with a remuneration model that is based on the company’s performance. Any such transaction helps to strengthen the borrower’s economic capital without diluting the shares of existing investors. The Investment Plan for Europe allows the EIB to provide quasi-equity and thereby step up investment into highly innovative companies that previously would not have been eligible for EIB financing.
Founded in 2007, inRiver AB is a global, rapidly growing, and award-winning Software-as-a-Service company with an extensive partner network. The company is headquartered in Malmö, Sweden, with offices in Chicago, London, Amsterdam, and Stockholm. More than 900 brands around the world rely on inRiver Product Marketing Cloud to orchestrate the creation, packaging, and distribution of their product information. www.inriver.com
The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term financing available for sound investment in order to contribute towards EU policy goals. In 2016, the EIB provided Swedish projects with loans totalling almost EUR 1.9 billion.
TheInvestment Plan for Europefocuses on strengthening European investments to create jobs and growth. It does so by making smarter use of new and existing financial resources, removing obstacles to investment, and providing visibility and technical assistance to investment projects. The Investment Plan is already showing results. The projects and agreements approved for financing under the EFSI so far are expected to mobilise EUR 209 billion in total investments across 28 Member States and to support 427,000 SMEs. On 14 September 2016, the Commission proposed extending the EFSI by increasing its firepower and duration as well as reinforcing its strengths. Find the latest EFSI figures by sector and by country. For more info, see the FAQs.
EIB financial products offered under the European Growth Finance Facility, part of EFSI, support innovative and/ or fast-growing SMEs and midcaps. Under the European Growth Finance Facility programme, the EIB offers ‘quasi-equity’ products, in order to improve access to finance for innovative SMEs and midcaps (up to 3000 employees.) All are demand-driven instruments, with no prior allocations between sectors, countries, or regions. Firms and other entities located in EU Member States will be eligible as final beneficiaries.
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