Software company in Turkey

February 19, 2025
by a searcher from INSEAD in İstanbul, Türkiye
Hi Searchfunder community!
I am starting formal due diligence on a software company (after a 2.5-month preliminary DD period) with the goal to close by end-April. I am seeking capital from new investors who are interested in backing a profitable, high-growth Turkish company (joining the existing cap table of 14 investors).
The business was founded over 20 years ago and is the local market leader in its niche (investment thesis: continue to grow locally, cross-sell modules, and increase prices while exploring international expansion). It has a 5-year top-line CAGR of 26% (in USD-basis), contractually recurring revenue representing 56% of 2024 revenue (91% including non-contractual recurring revenue), and annual gross logo churn of 5.0 to 7.5% (mission-critical, low share-of-wallet solution).
The owner is looking to sell to my search fund to secure the company's future, appreciating the legacy aspect we bring. They agreed to a 20% equity rollover and a 20% vendor note (4 instalments over 4 years).
Please reach out to redacted if you are interested in a chat! The minimum ticket I am raising per investor is USD 250,000, giving preference to those that can go up to USD 500,000.