The startup ecosystem in Lithuania is growing rapidly – according to the data of December 2024 from Startup Lithuania, TOP 20 startups in the country raised a total of over EUR 1.12 billion in investments. The largest investment in 2024 – as much as EUR 20 million – has been raised by Ovoko, a Lithuanian startup developing an integrated platform for selling used car parts. The company announces expansion plans and aims to hire 100 new employees.

“The investment we have attracted is a great vote of confidence that gives the startup the opportunity not only to grow, but also to transform the used car parts market into an even greener and more sustainable one,” says Saulius Česnulevičius, co-founder of Ovoko. He says that the company will channel the investments received in three directions: firstly, it will invest in a marketplace, warehouse management and logistics solutions. Secondly, it will focus on Western Europe, where Ovoko hopes to become the market leader. “All of this is not possible without an exceptional team, so over the next 16 months we plan to recruit 100 ambitious talents to build the market of the future,” says Mr Česnulevičius.

Lithuanian startup Ovoko, operating under the brand RRR.lt, has received its largest investment in 2024 from US venture capital fund Smash Capital. Since its launch in 2016, Ovoko has attracted a total of EUR 35 million in investments. In its previous funding round, in 2022, the startup received EUR 14 million and in 2020 EUR 1 million from Practica Capital, Mantas Mikuckas and other early investors.

Sustainability at the heart of the idea

“Sustainability is an integral part of what we do, because every reused car part reduces waste, does not waste energy and does not create the emissions that come with new production. We believe that a responsible approach and sustainable development go hand in hand with long-term business growth,” states Mr Česnulevičius.

The used car ecosystem developed by Ovoko combines an online marketplace, a SaaS platform and logistics services. All of this will help car scrappers digitise, sell and ship car parts anywhere in Europe quickly and efficiently. According to Mr Česnulevičius, this year the company took an important step by launching value-added services and strengthening strategic partnerships with logistics and payment providers. These changes not only ensured double growth, but also helped reach a break-even point, an important proof of the efficiency of Ovoko’s business model.

“We have an ambitious goal to create a new market standard in the next five years. We want Ovoko to become the first platform where a buyer can find any used car part and buy it based on price, quality or speed of delivery,” comments Mr Česnulevičius. According to him, there is no such solution in the world yet; currently more than 80% of the company’s sales take place outside Lithuania, with France being the biggest focus. Ovoko’s sales revenue in 2023 was EUR 22.5 million and the company employs around 200 people.

7th place among Lithuanian startups

According to the most recent data from Startup Lithuania, a division of the Innovation Agency Lithuania, today Ovoko is ranked 7th among the leading startups of the country in terms of investments raised in 2024. It is estimated that TOP 20 largest Lithuanian startups have raised over EUR 1.12 billion in investments. Vinted is the leading startup with EUR 477.3 million, followed by Nord Security in the second place with EUR 187.2 million, and PVcase in the third place with EUR 109.4 million.

“Lithuania is not only becoming the fastest growing startup hub in the region, but it is also demonstrating that the efforts of the Ministry of the Economy and Innovation and the Innovation Agency are delivering real benefits to the economy. Startups develop innovations, raise capital, create jobs, pay taxes to the state and thus guarantee further economic growth,” says Karolina Urbonaitė, Head of Startup Lithuania of the Innovation Agency Lithuania. According to her, this is also appreciated by foreign partners, investors and rating agencies.

According to the latest StartupBlink Index, Lithuania has risen one position in the Global Startup Ecosystem Index this year, ranking 16th. The capital Vilnius also moved up two positions from last year to the 71st place.

The Dealroom Review covering the period of 2018–2023 showed that the Lithuanian startup ecosystem grew more than 7-fold from EUR 1.9 billion to EUR 13.7 billion. The Dealroom Review, which analyses the latest data with detailed investment results, will be launched on 29 January 2025 at the annual “Wrap up of 2024” event organised by Startup Lithuania.