Mrvoš Seeks Salvation for Include: ‘We Are Not Closing, We Are Looking for a Partner’

The Solin-based manufacturer of smart benches, Include, is experiencing the worst crisis in its history after several years of negative business, culminating in a dramatic revenue drop of 47 percent in 2024. The company founded by Ivan Mrvoš, which attracted a total of 3.4 million euros in capital through three investment rounds, ended last year with revenues of 660.5 thousand euros and a net loss of 679.3 thousand euros.

However, despite comments from investors and negative business performance, Mrvoš denies the information and claims that Include is not in the process of closing but is seeking strategic partners to continue operations.

Include was one of the few Croatian manufacturers of smart urban equipment that, in its heyday, reached as many as 61 markets worldwide. The company produced Steora smart benches, Aerys stations for measuring air quality, and Terra smart waste containers. Nevertheless, despite the innovation of its products, it has failed to achieve profitability since 2018.

According to data from last year’s report, 2024 was catastrophic for Include. Revenues fell from 1.25 million euros to 660.5 thousand euros, representing a decrease of nearly 50 percent. The net loss more than doubled compared to 2023, when it amounted to 327.7 thousand euros.

Investors Admit Mistakes

One of the main investors in the company, Stjepan Talan, founder of Solvis, and Ante Mandić, founder of IN2 Group, openly admit that they were overly passive investors who did not sufficiently control the situation.

– I regret it, but I did not pay enough attention and was an overly passive investor. I did not have enough information or control. By the time we realized it was going downhill, it was already too late. It started too ambitiously with uncontrolled costs, and the story was not managed well enough – admits Talan, adding that the problem may have been a mistake at the top management level.

Mandić, who considers himself one of the biggest losers in this investment alongside Talan, explains that Mrvoš is a ‘victim of politics’ because he started expanding just as the pandemic broke out, but due to political unattractiveness, he could not secure funding from funds that would likely have saved him at a crucial moment.

– Such products and services were not a priority during the pandemic, which dealt Include quite severe blows. The company lacks sufficient capital and support to weather the crisis, yet on the other hand, it is doing a great job. I believe that in such situations, the Government of the Republic of Croatia should save exactly such companies with a future through the National Recovery and Resilience Plan.

No one took care of him because he was probably not politically interesting enough and does not belong to the ‘blue circle’. This is not just Mrvoš’s scenario; there are many such brilliant entrepreneurs. We have helped such companies from the NPOO. Mrvoš is a tough fighter with a good product. If it weren’t for the relocation of the plant, we would probably have ended 2023 positively – Mandić, founder of IN2 Group, told us last year.

The Pandemic Ruined Ambitious Plans

Before the pandemic, Include had offices in Zagreb and Solin, as well as five international offices – in London, Madrid, Paris, Milan, and Frankfurt. The company employed around 65 people and was focused on research and development. The pandemic ‘cut all of that down,’ as Mrvoš described the situation in our conversation last year.

In the meantime, problems accumulated. Cities, as the main buyers, did not adapt quickly enough to digital communication, which complicated sales. Include had to drastically reduce the number of employees to about twenty and close its international offices.

Unfortunately, the attempt to return, starting in 2023 when the company achieved its first positive EBITDA of 45 thousand euros, did not continue. The relocation to a new production facility, which lasted until March 2024, further slowed down operations.

Unsuccessful Search for a Buyer

Investors attempted to find a buyer for Include but were unsuccessful.

– We tried to find a buyer for the company, but we did not succeed. I think it is a great shame because the company has a good product – says Mandić, adding that Mrvoš ‘probably even mortgaged his apartment’ in an attempt to save the company.

Over the years, in addition to Talan and Mandić, domestic VC fund Fil Rouge Capital and numerous smaller investors through the crowdfunding platform Funderbeam, including Ivana Šoljan, Ante Magzan, Nataša Rapaić, and Nenad Bakić, have invested in Include.

Fil Rouge Capital was not available for comment, nor was Ivana Šoljan, who is also a member of Include’s Management Board. Of course, we first tried to reach the owner, Ivan Mrvoš, but unsuccessfully.

Mrvoš Denies Closure

In response to our inquiries, the founder and main person behind Include, Ivan Mrvoš, firmly denies the information about the company’s closure.

– At this moment, we do not plan to close Include. The situation is definitely not ideal, but it is solely our decision, as simply no one wanted to spend the whole year working hard to make one million euros in revenue without profit – explains Mrvoš.

According to him, Include has ‘held dozens, perhaps hundreds of meetings with various companies across the EU’ this year and received ‘several offers for the acquisition of the company, several for the sale of technology, and several for strategic partnerships.’ However, none of the offers were realized as they were ‘unacceptable from the perspective of existing co-owners’ or because the bidders ‘do not have the capacity to realize what they propose.’

The company has, as he explains, taken drastic measures to ‘stay afloat’ while seeking the best solution – it has completely cut the number of employees and sold the most valuable machines, from which obligations for salaries and public contributions have been settled.

– The company currently has over one hundred thousand euros worth of equipment and goods in two warehouses in Split and one in Sesvete – which, admittedly, is worth zero to anyone else, but is valuable to us for continuing operations – adds Mrvoš.

The key team is still around Include, and ‘revenue this year will be minimal, around a hundred thousand euros’ as they halted sales activities at the beginning of the year, ‘although they receive inquiries every week.’

Currently, Include is conducting ‘only one conversation, with the idea of establishing a joint venture company,’ but Mrvoš does not want to say more as ‘it is not correct to pressure someone through the media.’

– It is possible that in the foreseeable future we may even decide not to continue pushing this story, and in that case, sell the technology and pivot Include into something else. It is possible that we will completely give up, and it is also possible that we will continue with our initial plans with a strategic partnership – admits Mrvoš, adding that if they really decide not to continue further, they will first inform all co-owners and then announce it on all channels themselves.

What to say, except – what a pity. Include is a rare example of a Croatian company that has managed to internationalize innovative urban technology products, but it seems they are unable to overcome the combination of the pandemic, insufficient capitalization, and other (B2G) challenges.