Hungary-based IT education startup Codecool has raised €3.5 million in a Series B fundraising round. The main objective of the startup is to reduce the shortage of digital workforce in Europe.
The funding involved Budapest-based venture capital fund management firms Lead Ventures and Portfolion. Lead Ventures was the lead investor and Portfolion was a follow-up investor, both adding to their previous Series-A investment.
The Hungarian startup will be using the funds to expand its business in the International market.
Know everything about Codecool
Codecool offers to train people digital skills and provide employee placement. Till now, the startup has trained and assisted 400 individuals, who had no previous qualifications related to digital field.
It places students graduating in IT jobs and has corporate partners in 7 countries. Codecool was the first to provide its programming training with a job placement guarantee, in which field it boasts a 99% success rate.
As of now, the startup has 500 people studying at four institutions under its operation. These institutions are situated in Hungary and Poland.
Why is the startup necessary in today’s time?
In the recent times, Budapest has been pacing up in the fields of innovation and technology at a huge scale. Moreover, there has been a full-scale digitization in Europe, due to which there is a rise in the need of digital workforce among companies all over the continent.
Also, it has been estimated that the number of job vacancies requiring digitally skilled workers will be rising to 700,000 by 2020 on an EU level.
It has also been reported that a staggering 77% of EU companies have stated that lack of digital skills among employees is the biggest obstacle to their digital transformation. To be specific, 90% of C-level executives are witnessing the recruitment of IT talent as a top business challenge.
Founder of Codecool, Balázs Vinnai stated, “We can see that widescale automation and digitalisation of business processes affects every area from production through logistics, sales and administration, which demands digitally skilled workforce not only at technology companies but in all industries be it manufacturing or services. The growth of European and especially Central and Eastern European companies will be defined by how successful they can become in the process widely referred to as digital transformation”.
In order to control such challenges, Budapest-based IT education startup Codecool rolled out a revolutionary education model for training coding and other digital skills in 2016.
The startup is also eyeing to become one of the most popular service providers in Europe in the field of training digital workforce and talent management by 2023.
The startup has projected its plans to scale up its education network by entering in the Romanian market by the end of 2019. It plans to open 10 campuses and to create an alumni nexus of nearly 10 thousand people.
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