Latvian speciality coffee roaster and café operator Kalve Coffee is set to raise €1m ($1.1m) through an initial public offering (IPO) to support its international expansion and enhance production capabilities.
The company, which was established in 2019, is targeting the second half of 2024 for the IPO, intending to become more accessible globally.
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Kalve Coffee has four café locations and a bakery in Riga, Latvia and a roastery in Jaunmārupe.
The funds from the IPO are earmarked for the opening of six new café-stores in Estonia and Lithuania by 2025, with plans to extend into other Baltic regions by 2026.
The IPO proceeds will also be used to optimise manufacturing processes and increase production capacity at the Jaunmārupe facility.
The Jaunmārupe facility, which opened in 2021, can produce 60,000kg of coffee monthly and supplies hotels, restaurants, and catering clients across Latvia, Poland, Estonia and Germany.
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By GlobalDataIn addition to roasting coffee, Kalve Coffee is a distributor for Victoria Arduino and Nuova Simonelli coffee machines and Eureka grinders.
The company is also looking to expand its coffee machine rental and maintenance services.
Kalve Coffee reported a 38% increase in year-on-year sales growth in 2023, achieving a record €2.5m ($2.7m) in revenue.
The Baltic Times quoted Kalve Coffee co-founder and board member Gatis Zēmanis: “At the heart of any business is the ability to ensure a healthy cash flow, which we have been able to do. Since Kalve was founded, we have shown steady growth, increasing the company’s turnover from €0.35m to €2.49m in four years.
“This is a very positive trend and also good for the company, given that Kalve wants to address the lack of availability in the premium coffee market by providing customers with a unique speciality coffee experience.
“The fact that demand continues to grow is also evidenced by the volume of Kalve coffee sold, with almost 83 tonnes last year, an increase of 25% compared with 2022.”
