Ankara, the "Bilkent" technology park. In the lobby of one of the companies, we are greeted by the inscription "Great companies are created by great people with great values. We value life." On the wall with the inscription, we will recognize Pijo and Penda. And although at first glance the martenitsa, hung in this city, raises questions, the answer logically leads to Bulgaria, because since 2020, the co-owners of the Turkish company "Mobiliz" are Hristo Daskalov and Nikolay Kichev - owners of GPS Bulgaria and managing partners of the "Siela" group, and the martenitsa - a gift from the Bulgarian Ambassador to Turkey Angel Cholakov, writes BTA.
Turkish investments in Bulgaria amount to 2.7 billion euros, according to data from the Turkish Ministry of Economy. However, information about Bulgarian investments in Turkey is still very scarce and mainly extends to the fact that every year 3 million Bulgarians visit Turkey for tourism or health services. Therefore, the acquisition of a Turkish company by Bulgarians is an event in itself. Today, the company “Mobiliz“ supports the GPS systems of nearly 500 thousand cars in Turkey, develops artificial intelligence, and due to the need for personnel, at the beginning of this month Hristo Daskalov and Nikolay Kichev have also launched another new project - for training in programming and digital skills, opening a branch of “SoftUni“ in Turkey.
“20 years ago, GPS trackers were installed in cars that transmit where the car is going. Over time, additions were introduced that provide information when the car is started or stolen. Over time, these devices began to transmit hundreds of parameters related to the car via SIM cards - where it goes, what it does, how it is driven. We also offer additional capabilities through specialized software that allows companies to digitally manage vehicles, as well as (monitor) their expenses and drivers. Without this type of service, they cannot be managed and controlled, because we are talking about different brands, models, engines“, said Hristo Daskalov in an interview with BTA.
THE BEGINNING IN TURKEY
After developing a successful business with GPS systems in Bulgaria, Hristo Daskalov and Nikolay Kichev began to consider how to expand the activities of the company they managed. The steps to acquire one of the leading Turkish companies in the sector were taken after receiving information from investment bankers in London that “Mobiliz“ was put up for sale due to rules by which the then owner operated - an investment fund, which had adopted as a rule the exit from a given investment within 7 years after its completion.
“Our knowledge of Turkey was zero at that time. At the beginning, we said that we could not meet the expectations for the price and would not make an offer so as not to offend the seller. However, in time they said: no, no, wait! Let's start talking - give us your business plan, we will give ours! In a dynamic 3-4 months, their expectations and our capabilities began to converge. In the meantime, we had to secure financing. In the end, things happened and in March 2020, we signed the agreement with the fund on the share transfer deal“, said Hristo Daskalov.
The deal was made just when a state of emergency was introduced due to the COVID pandemic. Because of this, for the first 6-7 months, the new owners from Bulgaria communicated with the employees in the offices in Ankara and Istanbul only via video conference connections.
“This could have ended very badly, because you don't know where you're going, but gradually we started traveling and getting to know each other. It wasn't easy - the Bulgarian company is smaller than the Turkish one, i.e. a smaller player bought a bigger one. In addition, people have other expectations, there are cultural differences. We started to act step by step, with my partner Nikolay Kichev even going to live in Istanbul for more than a year. He moved with his family so that he could be there every day, which largely allowed us to get to know these people. I also travel every month. That way we were able to start working a little more intensively – in the way we imagine“, explained Hristo Daskalov.
The Bulgarian owners have to overcome difficulties – from the management style imposed by the previous owners, through cultural differences and the insecurity of employees due to economic instability.
“We have raised salaries 4 times in just 18 months. It is never enough because of inflation. This is an investment and we even had to explain to people that the owner does not take money from this investment, but gives. In difficult times, we invested additional money in the Turkish business, which is not always easy, but always worth it“, emphasized Hristo Daskalov.
NEW RULES LEAD TO NEW SUCCESS
By solving the problems and creating new rules, “Mobiliz“ has reached the level of one of its biggest competitors in Turkey, with whom it competes for the championship in the sector. Now the company's annual growth is between 15 and 35 percent.
“When we acquired it, 80 people worked, and now 130 people work. Most of them are in Ankara, and the rest - in Istanbul. From 230 sq m of office, we now have 650 sq m and we continue to grow. In Ankara, we are located in the “Bilkent“ technopark. Technoparks in Turkey provide advantages to employees - there are tax incentives. In addition, people work in a technological environment, which they like“, explained Hristo Daskalov.
WORKING WITH KEY INSTITUTIONS IN TURKEY
One of the great successes is working with key players in the security and defense industry in Turkey, which is capturing more and more global markets.
“We are a supplier to the Gendarmerie in Turkey for certain services. It is not easy, but we gained access based on our skills, work and our employees in Ankara, who have made efforts in this regard. We also work with artificial intelligence, through which we assess the risk in different areas of the city and where to send patrols“, emphasized Hristo Daskalov.
GROWTH TOWARDS NEW ACTIVITIES
Over 40 software engineers of the company are working on new functionalities in Ankara, which should meet customer demand and allow the company to enter new sectors.
“We are now moving on to developing software for industrial solutions – we can monitor temperature, humidity, doors, internal movements in warehouses. Apart from that, we have a team that deals with electrification, chargers for software stations“, notes Hristo Daskalov.
HUMAN RESOURCE MANAGEMENT
After its acquisition by Bulgarians, “Mobiliz“ has won the award for best workplace three times. It was awarded based on a survey by the founder of the award (a Turkish company – ed. note), in which employees had to answer 80 questions related to the working environment.
“One of the reasons was the goals we set ourselves after the acquisition – leadership, continuing education, investment in people. And this model brought us the award. “Mobiliz“ is one of the most preferred companies to work for“, said the general manager of the company in Turkey Yetkin Aksoy.
Five years of working with the owners from Bulgaria have given him the opportunity to appreciate their advantages. According to him, the European influence in Bulgaria is already a fact.
“In Turkey, no matter how much you do business, there is a greater emotionality, stemming from the people and the family structure. Europe puts a little more emphasis on discipline and professionalism. I think that combining these things in a common environment has strengthened both sides. Of course, in the first year or two we went through a transitional period in which we got to know each other, but today we are implementing the entire strategy and vision as a single team. This gives us great pleasure. I think the most important thing we learned is professionalism,“ said the general manager of “Mobiliz“.
Hristo Daskalov, for his part, adds that before the company was managed in a much more authoritarian and centralized manner, and now employees have freedom and the opportunity to express themselves. In addition, salaries have been increased by 30-40 percent and now reach the levels of pay in the field of information technology in Bulgaria. This is also necessary because of the battle for personnel, in which state institutions in Turkey are also involved.
“Unlike Turkey, there is no state institution in Bulgaria that can “steal“ an employee from me. "It cannot afford it, while there are large military companies in Turkey that have attracted my employee with twice the salary," says Hristo Daskalov.
DEVELOPMENT HORIZON
The scale and economic potential of Turkey also determine the horizons for the company's development. According to Hristo Daskalov, this year "Mobiliz" expects 20 million dollars in revenue. The owners' ambition is for the growth to be between 40 and 50 percent at the operating profit level, and the general manager's - after the projects it is implementing in Turkey's neighboring countries, "Mobiliz" to become a leader in the region.