Morphosis Capital Fund I Cooperatief UA, a growth equity fund, reports a 42% combined increase in turnover of its portfolio companies in 2022 compared to 2021. In 2022, the six companies saw a total EBITDA growth of 106% compared to 2021. Morphosis Capital’s portfolio includes the following entrepreneurial companies: DocProcess, Medima Health, Dr. Leahu Dental Clinics, EMI, Cronos Med, and Stay Fit Gym.
“2022 was a year of consolidation and expansion for all six of our portfolio companies, organically and through acquisitions. The performance maintained the accelerated pace of growth, with the revenues growing by 42% in 2022 while the combined EBITDA doubled. In this context, our focus last year on portfolio management worked, providing solid grounds for the future. Although 2023 appears to be a challenging year, we remain focused on expansions and continuing investments, as we want the positive evolution we achieved in 2022 to continue also this year,” stated Andrei Gemeneanu, Managing Partner of Morphosis Capital.
The economic value generated and reinvested in the economy by Morphosis Capital portfolio companies amounted to 54 million euros in 2022. This indicator, calculated according to Global Reporting Initiative (GRI) standards, includes salaries paid, investments made in development, contributions to the state, community, partners, suppliers, and amounts paid to banks and investors.
The number of full-time employees in the six entities increased in 2022 from 721 to 952 professionals, with the portfolio companies creating over 230 new jobs last year alone. All portfolio companies continued the accelerated growth in 2022, closing nine bolt-on acquisitions and ten organic expansions.
Medima Health opened three new clinics in Buzau, Braila, and Bucharest, while Dr. Leahu Dental Clinics opened two in Bucharest and Brasov. DocProcees consolidated its position in France, and EMI completed the acquisition of two companies in Belgium. Also, in 2022, Cronos Med took over two clinics in Iasi and Brasov, and Stay Fit Gym expanded its network with ten new gyms, including five organic openings: two in Bucharest, one in Sibiu, Galati, and Voluntari. Another five gyms were taken over through M&A deals, two in Pitesti and one in Bucharest, Sibiu, and Galati.
“Over the past four years, we have partnered with six Romanian founders to support them in turning their entrepreneurial vision into reality, which remains our top priority. Every new clinic or gym opened helps improve people’s health, creates new jobs, and generates inflow to the state budget. We will continue to create and to add value in the companies we invest in, and, benefitting from the entrepreneurs’ vision, ambition, and motivation, we will pursue the sustained accelerated growth of our portfolio,” added Andrei Gemeneanu.
Morphosis Capital’s first fund is focused on the health and wellbeing sectors, with four of the six companies operating in these industries, namely Medima Health, a network of clinics specializing in imaging and radiology, Dr. Leahu Dental Clinics, the most significant dental clinic chain in terms of geographical footprint, Cronos Med, the market leader in aesthetic medicine, and the fitness chain, Stay Fit Gym. Additionally, DocProcess operates in the technology field, and EMI provides integrated industrial access solutions and services.
In 2022, Morphosis Capital and its partner companies have democratized access to high-quality healthcare services in 18 counties in Romania through rapid expansion. This expansion supported the portfolio companies’ impact, resulting in over 68 thousand patients being cared for by more than 250 doctors and the improved physical wellbeing of over 14 thousand customers of Stay Fit Gym. In addition, regarding environmental impact, DocProcess has helped save 1,400 trees by processing and archiving documents electronically.
Morphosis Capital Fund I Cooperatief UA was launched in December 2018 with a subscribed capital of 50 million euros and a goal to deploy all the capital in Romanian entrepreneurial companies from the healthcare and wellbeing, technology, manufacturing, and B2B services industries. For 2023, the fund has capital for one more investment or for a follow-on capital round shared with its co-investors in one of the six companies already present in the portfolio. The final decision in this regard will be made later this year.
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About Morphosis Capital
Morphosis Capital Fund I Cooperatief UA is a private equity fund with 50 million euros committed capital. Established in December 2018 by four Romanian entrepreneurs, Simona Gemeneanu, Gabriela Dumitru, Dragos Petre, and Andrei Gemeneanu, the fund aims to contribute to the development and transformation of Romanian SMEs. The European Investment Fund (EIF), the leading financing platform for European SMEs, co-financed through the Regional Operational Programme, is the anchor investor in Morphosis Capital, while the founders themselves are the co-investors in the fund. Morphosis Capital invests between five to ten million euros in high-growth Romanian companies from sectors such as FMCG, niche healthcare, technology, and B2B services, which have a strong potential for international expansion and an EBITDA of a minimum of half a million euros. Morphosis Capital’s portfolio includes DocProcess, Medima Health, Dr. Leahu Dental Clinics, EMI, Cronos Med, and Stay Fit Gym.
An EU-funded instrument, through the European Regional Development Fund (ERDF), under the 2014-2020 Regional Operational Programme (ROP), Priority Axis 2 dedicated to increasing the competitiveness of SMEs, via the financial instrument of venture capital.
