Major Investment in Hungarian Automotive Firm

Commsignia, a Budapest-based manufacturer of automotive communication devices, has raised USD 15 million in capital from Hungarian and foreign investors, the company told MTI on Wednesday.

The fundraising was led by Hungarian PortfoLion Capital Partners and Day One Capital, as well as Finnish Inventure and British Inference Partners, with the participation of US-based Qualcomm Ventures, South Korean Samsung and new investor LG Electronics of South Korea. The funds will be used to create high value-added jobs, with the expansion explained by the rapid growth of the automotive communications market.

According to the announcement, Commsignia's software and devices started to be used in cars, trucks and buses, but have now also made inroads into the bicycle and electric scooter markets. Their tools can not only reduce the number of road accidents, but also allow transport companies and road managers to gather real-time information on traffic conditions, understand road conflicts, and give the green light to buses, ambulances and fire brigades.

Founded in 2012, the company employs 140 people and its devices are already present in several countries in Europe and the United States. Commsignia has reported losses for the past two years, but has achieved revenues of almost HUF 1.4 billion in 2021 and more than HUF 1.85 billion in 2022. The vast majority of the turnover came from foreign sales.