V C CAPITAL

V C CAPITAL Ltd. is a registered company in Bulgaria, founded on March 19, 2019. The company is headquartered in Sofia and specializes in the cultivation of oyster mushrooms (Pleurotus ostreatus) under controlled conditions. Since 2021, the company has fully transitioned to mushroom cultivation, focusing on producing high-quality mushrooms for both the retail and foodservice markets.

It currently manages four cultivation facilities, each 40 m², with plans to expand to ten facilities as part of its strategic growth initiatives. V C CAPITAL Ltd. employs advanced climate-control technology to ensure consistent production quality, regardless of external factors. Its production process begins with the use of externally sourced, high-quality pre-inoculated substrate. To enhance profitability and ensure better control over production, the company is transitioning to in-house substrate production with the planned addition of pasteurization chambers.

The company is led by its founder and managing director, Ivaylo Georgiev Staninski, an experienced entrepreneur with a background in agricultural management. The company has demonstrated steady growth, achieving a projected annual production volume of 163,380 kilograms of oyster mushrooms in 2024.

Core Operations:

1. Controlled Cultivation: Mushrooms are grown in facilities with regulated temperature, humidity, and carbon dioxide levels to maintain consistent quality.
2. Substrate Management: The company currently relies on external suppliers for pre-inoculated substrate but plans to transition to in-house production to lower costs and enhance control over the process.
3. Harvesting and Packaging: Mushrooms are harvested by hand, sorted, and packaged according to client requirements, including private-label options.
4. Distribution: Products are delivered using refrigerated logistics to ensure freshness and timely supply.
5. Product Development: Future plans include expanding into additional mushroom varieties, such as shiitake and enoki, as well as producing value-added products like dried mushrooms and powders.

The company supplies:

• Retail Chains: Providing mushrooms for supermarkets and specialty stores.
• Foodservice Clients: Serving restaurants, catering businesses, and institutional buyers.
• Export Markets: Exploring opportunities for international distribution.

Revenue is generated through:

• Mushroom Sales: Fresh products sold to retail and foodservice clients.
• Customized Packaging: Private-label packaging tailored to client needs.
• Future Products: Plans to expand into other mushroom types and processed items.

The financial performance of V C CAPITAL Ltd. demonstrates steady growth and operational improvements over the analyzed period (2022–2024), supported by strategic investments and cost management. Below is an analysis of the company’s financial results.

The company has experienced significant growth in revenue:

• 2022: €232,654
• 2023: €454,265 (+95%)
• 2024 (Projected): €715,482 (+57%)

This consistent growth highlights strong demand for the company’s products and its ability to scale operations effectively. The increase in revenue reflects higher production volumes and successful client acquisition strategies.

Gross Profit and Cost Efficiency

• 2022: Gross Profit of €162,957 (70% Gross Margin)
• 2023: Gross Profit of €325,197 (71% Gross Margin)
• 2024 (Projected): Gross Profit of €542,787 (76% Gross Margin)

The gross profit margins demonstrate efficient cost management, with slight variations attributed to scaling production. Transitioning to in-house substrate production is expected to further enhance cost efficiency by reducing raw material expenses.

Net Profit Trends

• 2022: Net Loss of €-1,308 due to high initial costs.
• 2023: Net Profit of €17,832, reflecting initial recovery.
• 2024 (Projected): Net Profit of €243,159 (28% Net Margin).

The company’s profitability has improved significantly, driven by revenue growth, better cost controls, and operational scaling

Client	2024 Revenue (€)	2025 Revenue (€)	Revenue Growth (€)	Growth (%)
Kaufland	85,858	459,600	373,742	435%
Lidl	128,787	294,140	165,353	128%
Fantastico	164,561	238,920	74,359	45%
Total	379,206	992,660	613,454	162%

Total revenue from these key clients in 2024 amounted to €379,206, highlighting their importance to the company’s operations.

The combination of expanded contracts with Kaufland, Lidl, and Fantastico, along with significant production capacity upgrades, positions V C CAPITAL Ltd. for substantial growth in 2025. The planned increase in production from 15,800 kg to 55,300 kg per month ensures the company can meet contractual obligations while creating opportunities for further market penetration and revenue diversification. Strategic focus on operational efficiency and client relationship management will be key to sustaining this growth trajectory.

The global mushroom market continues to grow steadily, driven by increased interest in plant-based diets, sustainable agriculture, and the health benefits of mushrooms. The market is expected to grow at a compound annual growth rate (CAGR) of 8%, reaching $100 billion by 2030. Europe is a key player in this market, valued at approximately €12 billion, with demand bolstered by health-conscious consumers and expanding vegetarian and vegan diets.

In Bulgaria, the mushroom market is characterized by moderate but stable growth. Drivers include:

• Expanding retail and foodservice sectors seeking fresh and locally produced goods.
• Rising consumer awareness of the nutritional and culinary value of mushrooms.
• A favorable environment for fresh produce, including the integration of local producers into supply chains.

V C CAPITAL Ltd. is one of several producers in the Bulgarian mushroom market, supplying fresh oyster mushrooms to major retail chains and foodservice providers. The company focuses on maintaining consistent production quality and reliability, which supports its position as a supplier for recognized brands.

V C CAPITAL Ltd requires external financing to implement its strategic expansion plan and fulfill increasing production and storage demands. The financing will be allocated towards the construction of cultivation rooms, pasteurization chambers, and a processing and storage facility. These investments are critical to achieving higher production capacity, meeting contractual obligations with key clients, and ensuring the company’s long-term competitiveness in the mushroom cultivation market.

The requested loan of €650,000 will enable V C CAPITAL Ltd to:

1. Expand Production Capacity: The project will increase the company’s monthly production from 15,800 kg to approximately 55,300 kg, positioning the company to meet growing market demand.
2. Fulfill Contractual Obligations: The increased capacity will ensure timely delivery for key contracts with major clients such as Kaufland Bulgaria, Lidl Bulgaria, and Fantastico Group.
3. Mitigate Risks: The inclusion of a contingency reserve ensures flexibility to address any unforeseen construction or operational challenges without impacting the timeline.
4. Strengthen Market Position: The investments will enhance operational efficiency, reduce production costs, and enable the company to cater to larger contracts and additional markets.

To secure the requested loan of €650,000, V C CAPITAL Ltd offers a robust collateral structure valued at approximately €1,132,012. This collateral includes fixed and current assets, production output, and additional financial guarantees, ensuring security for the lender. However, given the specialized nature of the assets, the estimated recovery value in the event of liquidation is approximately 30% of their original cos

• Fixed Assets:
  • Cultivation Facilities: €259,385
  • Pasteurization Chambers: €177,010
  • Processing and Storage Facility: €168,800
  • Current Assets (Cultivation Facilities) €117,097
• Production Output:
  • Current monthly production generates approximately €61,251 in revenue, while post-expansion production is projected to generate €209,720 monthly. These products can serve as dynamic collateral during the production process.
• Cash Reserves:
  • The company currently holds liquid assets exceeding €200,000, which are available as immediate financial backing.
• Future Revenue Streams:
  • Long-term supply contracts and partnerships with established retail and foodservice clients provide consistent cash flow and additional assurance for loan repayment.