IT education startup Codecool has raised €3.5 million in Series-B venture capital funding as it seeks to expand its operations in Europe.
The Budapest-based firm has offered digital skills training and employee placement since launching three years ago. It currently operates four campuses in Hungary and Poland.
“We see that the shortage of skilled workers is a growing problem”
The company expects to increase its student enrolment numbers from 500 to around 800, as it enters the Romanian market by the end of 2019.
Codecool is seeking to meet the demand for job vacancies requiring digitally skilled workers. In the EU, it is estimated this will rise to 700,000 by 2020, according to the company. The start-up school said 77% of EU companies report missing digital skills as the main hurdle to digital transformation.
“The growth of European and especially central and eastern European companies will be defined by how successful they can become in the process widely referred to as digital transformation,” Balázs Vinnai, founder of Codecool, said.
Wide scale automation and digitalisation of business processes affects every area, Vinnai said, adding, “we can see that from production through logistics, sales and administration, which demands digitally skilled workforce not only at technology companies but in all industries be it manufacturing or services.”
By 2023, Codecool plans to open 10 campuses and to develop an alumni network of close to 10,000.
Budapest-based venture capital fund management firms Lead Ventures and PortfoLion are adding to the their previous Series-A investment.
“Codecool campuses provide up-to-date and practice-oriented training, which is demonstrated by the outstanding results of their former students on the job market,” Jenő Nieder, deputy CEO of PortfoLion commented.
“PortfoLion supports Codecool’s ambitious plans of regional expansion, as we see that the shortage of skilled workers is a growing problem. Apart from funding, we help reaching the company’s goals with our business and financing expertise.”
Graduating students are placed in IT jobs with Codecool corporate partners in seven countries. In 2017, revenue reached €1.3m, and €3.2m in 2018. It is aiming at €5m revenue for 2019.
