If you have ever ordered something online or had to send a package, you know how time-consuming a trip to a post office is. Restricted working hours, queues and loads of hassle. An Estonian start-up Cleveron (former SmartPost) set out to change that by launching a network of automated parcel terminals all across Estonia. The terminals consist of a series of lockers: when you receive a parcel you get a text message with the location of the terminal and a unique code to access the locker. Since terminals are often located in shopping centres with long opening hours, you are free to pick up your package at any suitable time. The system works in a similar way if you want to send a package. Cleveron has been operating in Estonia since 2009 but last year the network with it's brand name SmartPost was sold to Finnish Post (Itella Corporation). Cleveron's team kept all the know-how and are expanding their services to Russia, Czech Republic and Slovakia.

Russia's biggest privately funded postal company CPCR Express already signed an agreement with Cleveron to do a pilot project, which could lead to the company purchasing up to a 100 terminals in the course of this year. So far CPSR Express ordered 20 terminals, 15 out of which will be installed in Moscow and the rest in St.Petersburg. Given that CPSR Express's own network covers 3000 cities, towns and villages all over Russia, there is a lot of potential for expansion if the pilot is successful.

Cleveron's partners in Czech Republic and Slovakia decided not to purchase the terminals but contract the company to build and launch the network from scratch. That clearly demands more time, investment and risk. It is also a good opportunity for Cleveron to establish themselves in the European market where their biggest competitor DHL's Keba is also operating. Peep Kuld, a supervisory board member, explained the difference between the two services: 'While the products realized by Keba are made as standard-size terminals, Cleveron produces modules, which can come in basically any shape or size and be enlarged or made smaller if the necessity arises.' He also added that unlike DHL's Keba, Cleveron does not require customers to register before using the service. Besides, Cleveron can offer competitive prices due to the smaller production costs - their terminals are built for indoor use only.

Cleveron got an initial investment of around 2M€ back in 2009 but now that they are planning on building similar networks in much larger countries, Cleveron is looking for new sources of funding. Peep Kuld confirmed that becoming a publicly listed company is a likely option. Would Cleveron be the next IPO from Estonia?

Via Testmarket