PHH Group Increases Share Capital by EUR 61 Million
PHH Group, the largest e-commerce group in the Baltics and the parent company of Pigu.lt, Kaup24.ee, 220.lv and HobbyHall.fi is entering a new phase of development. The company’s main shareholder, international investment fund MidEuropa, along with other shareholders, is increasing the group's share capital to EUR 62 million. This move reflects strong confidence in the group’s strategy, leadership, and long-term potential.
The increase in share capital - from EUR 1 million to EUR 62 million - is a strategic step aimed at balancing previous losses and ensuring a sustainable financial structure for the future.
The investment will focus on stabilizing operations, enhancing customer service, driving technological innovation, and strengthening operational efficiency.
Investing in Quality, Growth Comes Next
“This stage of investment demonstrates shareholder confidence in our chosen direction. Right now, our focus is on investing in quality and improving the customer experience - offering a relevant, high-quality assortment, fast delivery, and keeping our promises. We also aim to strengthen our relationships with partners by ensuring transparency, timely payments, and sustainable collaboration models. Growth will follow,” says Dainius Liulys, CEO of PHH Group and one of the company’s shareholders.
According to D. Liulys, over the past five years, PHH Group has rapidly expanded across the Baltics, entered the Finnish market, and has become the region’s leading marketplace. As a result of the significant investment to develop the Marketplace for merchants, PHH Group today is able to offer its customers a wide assortment of over 12 million goods – a steep increase from just 3 million 3 years ago. However, the rapid growth during the pandemic and significant investments in expansion led to increased costs, reduced structural efficiency, and operating losses. These losses were driven by high initial investments in platform development, logistics, and the consolidation of Pigu and Hobby Hall into a single group. A substantial share of expenses was also allocated to transitioning to a marketplace business model across four countries.
“Today, the winners are those who continuously optimize operations, adapt to market realities, manage their assortment with precision, and deliver on their promises. After several years of rapid growth, the time has come to focus on sustainability, quality assurance, and long-term stability,” D. Liulys says.
Upon his return as CEO, D. Liulys initiated strategic changes, including the creation of an Efficiency Taskforce dedicated to process automation through AI, enhancing data synchronization, and improving customer service. Investments in innovation and harnessing AI-based solutions to improve the user experience, customer satisfaction and efficiency of Groups’ operations are also planned. The Group aims to stabilize operations by the end of 2025, with 2026 marking the beginning of a sustainable growth phase.
A Sign of Shareholder Confidence
“This strategic investment reflects the trust shareholders place in the company. We are enthusiastic about the return of Dainius to lead the management team at the Company and about the prospects for the business. We expect this new commitment to give PHH Group the necessary resources to improve the customer and merchant experience, improve supplier relationships and accelerate digital innovation. It will also help to enhance supply chain operations, and ensure competitive pricing—all key components of a profitable and leading business model in the Baltics,” says Matthew Strassberg, Partner at MidEuropa.
