Verve Group — Funding accelerating investment programme

The Verve Group has successfully completed a directed share issue of 12.9m new shares, raising SEK360m (€32.5m), with which it intends to scale its sales capacity, develop new product solutions, invest further in AI and expand into emerging areas such as retail media (with maximum leverage of 2.5x). This comes on the heels of a bond refinancing, reducing interest costs. Q1 figures showed revenues up 32% on Q124, delivering an adjusted EBITDA margin of 28%. We have edged revenue expectations up, but take a more cautious view on margins given the accelerated investment programme. Verve’s privacy-first and AI-driven solutions position it well to gain further market share. In our view, the valuation remains undemanding.