Two Swedish proptech companies have recently listed on the Nasdaq Nordic First North Growth Market. The exchange represents a strong growth opportunity for smart building companies to step up to the world stage.

On December 1st 2022, Stockholm-based smart workplace solution provider Flowscape, started trading on the Nasdaq Nordic stock exchange under the short name FLOWS. The firm uses IoT sensors and indoor positioning technology to create its proptech solutions, Flowmap, which provides digital workspace and analytics tools. It gives companies an overview of their office and enables them to quickly find rooms, desks, office equipment and colleagues as well as analysis of the use of the spaces.

This was not Flowscape’s initial public offering, however, the firm had been listed on Stockholm’s smaller Spotlight stock exchange since 2016 with reasonable success until COVID-19 spread worldwide. The pandemic disrupted workplaces across the globe and Flowscape has found its proptech solution well-positioned to support building owners and enterprise tenants with the challenges of a return to work and the rapid evolution to hybrid work.

“We now see a drastic increase in demand for IT solutions for the new hybrid way of working, where employees are expected to work 2-3 days from home even after the pandemic.This means new challenges - such as syncing which days which employees should be in the office and an increased need to nurture corporate culture and social ties when you do not meet as often. It is for these new challenges that Flowscape has one of the world's strongest offerings.” says Peter Reigo, CEO and founder of Flowscape.

Flowscape revenues for the Quarter ending 30th Sept 2022 were SEK 12.87m a YoY increase of nearly 28%, however Net Income was SEK -5.23m which was down over 6% YoY. There was also a net change of cash of SEK -4.25m. Currently, their share price is nearly 14% since they began trading on the NASDAQ 15 days ago, though clearly, it is still very early days. Memoori will cover their 2022 annual report when it is published next year.

On December 8th, the Nasdaq Nordic First North Growth Market welcomed another Swedish proptech company, Gothenburg-based LumenRadio. The company offers scalable solutions that build on patented technology for wireless data transfer on open frequency bands. It can replace traditional cables for control and automation for the Internet of Things (IoT). Dividing its operations between two main business areas —Lighting & Smart Cities (L&SC) and Building & Industrial Control Systems (B&ICS) - LumenRadio has become an established regional player with a growing international presence, and their listing on the First North Growth Market was the logical next step.

”This is the beginning of an exciting next step for LumenRadio,’ said the company’s CEO, Alexander Hellström. “During several years, we have invested in proprietary and patented technology for reliable wireless communication and today have a very strong customer base. We now see a great opportunity to grow in both existing and new markets, and at the same time invite new shareholders to join the company. We have an incredible journey behind us, and this listing means that we have the opportunity to accelerate our continued growth journey. Because although we already have achieved a lot, most of it is still in front of us.”

Investors have agreed to acquire shares in LUMEN corresponding to a total value of SEK 215 million ($21 million), while Board member Nicolas Hassbjer, CoB Magnus Terrvik, CEO Alexander Hellström, and CFO Magnus Holm have reportedly acquired additional shares, corresponding to a total value at least SEK 5 million ($0.5 million). Like with Flowscape, the listing on Nasdaq Nordic will provide LumenRadio with a broader base of new shareholders and access to the Swedish and international capital markets, which are expected to drive the proptech companies’ continued development and international expansion.

LumenRadio reports impressive revenue growth for the Quarter ending 30th Sept 2022, with YoY increase of 66% at SEK 53.74m. Margins also increased, with Net Income over 86% up on last year at SEK 11.03m. Their share price has increased 5.5% in the short time since their IPO. Again, this is a proptech firm we will continue to cover next year.