IT company Cyberg will become the second company to have its shares traded on the Xtend market of the Budapest Stock Exchange (BSE) after it received a licence from the bourse operator on January 10. The BSE launched this trading market to support the listing of SMEs with growth potential in 2017.
Founder-CEO Balazs Rozsa, with years of experience in the financial sector, came up with a hybrid model that marries technology with the catering industry. Cyberg operates one fast casual dining restaurant in downtown Budapest by the name of Kajahu, which served as the testing ground for the business model.
The unique selling point of the business is that customers can order their food and pay through built-in touchscreens at tables, which also allows the use of other digital services. Customers can chat with the other guests or play games, or access content. The system can also invite people automatically, offering them various discounts. The digital devices will reduce headcount costs and save time.
As for the selection of the menu, the founders tried to minimise risks and stuck to well-known, international food as they seek to expand abroad, but Hungarian grown Grey Cattle burger will also feature on the menu. Industry insiders say the company can appeal to both foreign and domestic guests with its unique solutions and food selection.
In the long run, the founders see business potential not only in restaurant services but in digital content as well.
Cyberg will use the money raised to grow its business and expand abroad. Ten restaurants will be opened by 2030 in Hungary. It has sold its first international master franchise right to Region Capital Holding, which plans to open 73 restaurants in Slovakia, the Czech Republic, Poland, Austria in ten years.
More than 70% of the shares are owned by the three founders and some 26% of the shares will be floated. The company's shares will be introduced to the market at HUF1,800 (€5.6).
The company has seen rapid growth in revenue but remains in the red. Revenues rose by 86% to HUF182mn in 2017 from 2015. It cut losses to HUF31mn from HUF70mn during the same period.