Gigas Hosting, a Spanish company specializing in cloud and managed solutions services, has completed a new financing round aimed at strengthening its growth roadmap. The Inveready fund has contributed €7.5 million through a convertible bond issuance into shares with a five-year maturity, a common approach when the goal is to provide capital without executing an immediate equity raise, leaving the option of conversion to equity open for later.
The operation, announced to BME Growth, is structured into two tranches totaling €7.5 million. These bonds can be converted into Gigas shares at a weighted price of €4.37 per share, and conversion will be available starting from the 19th month after subscription. The company has indicated that it will allocate the funds to boost organic growth across its main lines of activity.
What does (really) a convertible issuance mean for a tech company?
To the general public, “convertible bonds” sound like financial jargon. In practice, it’s a middle ground between debt and equity: the investor lends money to the company, but with the option (or right, depending on the terms) to convert that debt into shares in the future. In the context of listed tech companies in growth markets, this type of instrument usually carries two clear interpretations:
- Less friction financing than an immediate capital increase (since dilution doesn’t materialize right away).
- Investor confidence indicator: Inveready not only provides funds but also positions itself to take part in equity if the company’s performance aligns.
In exchange, the market considers a possible future dilution scenario if conversion occurs, which is typically analyzed based on the conversion price, stock performance, and the company’s cash needs.
The European factor: InvestEU as a “cushion” to mobilize investment
One of the distinctive elements of this financing is the European Union’s support via the InvestEU fund, within the framework of the Spanish member state. Simply put: it doesn’t necessarily mean “Europe puts in the money” directly into the company, but it acts as a backing mechanism to facilitate closing and scaling such transactions, especially when aimed at enhancing competitiveness, digitalization, and the European business fabric.
For a company like Gigas, operating in a sensitive sector like digital infrastructure (cloud, business continuity, managed services), the alignment with European priorities — resilience, technological sovereignty, business modernization — is clear: it’s not just about servers, but about the real capacity to execute projects and sustain growth in a market where trust and medium-term investment make the difference.
Inveready is already a key player in Gigas’ capital
This €7.5 million injection follows an important precedent: Inveready increased its stake in Gigas to 32.27% after converting bonds into shares and conducting a subsequent capital increase several months ago. This isn’t a one-time move, but a relationship of investor–company that is consolidating, and with this new issuance, it is further reinforced.
Gigas’ shareholding also includes notable names from the Spanish business ecosystem, such as José Eulalio Poza, one of the founders of MásMóvil (now part of Masorange), and Global Portfolio Investments, the holding company of the Domínguez de la Maza family (Mayoral textile group). This mix of profiles — financial, technological, and entrepreneurial — points to a company seeking stable growth in a market where “cloud” has become a strategic imperative for nearly every sector.
Why this deal matters beyond the figure
In the tech market, €7.5 million might not seem enormous… until you understand the context: competing in cloud and managed services requires ongoing investments in capacity, product, security, support, and operations. Additionally, many companies’ demands are shifting: they no longer seek just “hosting,” but providers capable of supporting migrations, designing hybrid architectures, improving cyber resilience, and offering SLA-backed services with real support.
Thus, this kind of financing is often seen as a lever to accelerate growth without giving up basic financial discipline. It also serves as a reminder: in technology, the race is rarely won by whoever has the best commercial promise, but by those who can execute consistently.
Frequently Asked Questions
What is a convertible bond, and how does it affect Gigas shareholders?
It’s debt that can be converted into shares. If converted, it might cause dilution for existing shareholders, but this depends on the conversion price (€4.37/share in this case) and the final volume converted.
What does the backing by InvestEU mean?
It means the financing is supported by a European framework designed to mobilize investment and facilitate transactions aligned with priorities like digitalization and competitiveness. It doesn’t necessarily involve a direct “grant,” but it offers backing that helps close such deals.
Why does Gigas prefer convertibles over a traditional equity raise?
Because it allows raising funds now without immediate dilution, leaving the option of conversion open for later (from month 19), when market and company conditions might be more favorable.
How might Gigas use these €7.5 million for organic growth?
By strengthening its core areas (product/service), operational capacity, security, commercial development, and project execution, especially in a cloud market where demand for managed services continues to grow.
Source: Gigas Investors Portal