
How our partnership began
Credo invested in Q-Light in December 2021 to help realise the Company’s full potential. The Company had seen impressive financial performance after the Founders joined full-time in 2020, and growth prospects were strong, supported by a large and growing lighting market with no established number-two player.
Q-Light had a distinct value proposition towards electricians and proven competitiveness vs market leaders. With an innovative product range designed to ease installation, growing an already solid lighting platform was the cornerstone of the investment case, with M&A as a tool to accelerate growth. Since then, Q-Light entered the EV segment and built a market-leading position within pedestals. A self- developed EV charger was further launched, creating a synergetic position in this segment.
The transformation
Following a record-breaking year in 2022, Q-Light faced significant challenges in 2023. Market conditions declined, and the company experienced a critical shortage of sales personnel, compounded by factors beyond its control. The delayed launch of a promising new EV charger further impacted sales, leading to weaker financial performance and highlighting the need for better internal financial visibility and procedures.
Despite these hurdles, Q-Light focused on strengthening its organisation throughout the year. By mid-year 2023, Q-Light had brought on a highly experienced CCO and several top-tier salespeople, significantly bolstering the team and positioning the company for continued growth going into 2024.
However, the market for residential construction continued to decline in 2024, a crucial market segment for the company. To compensate, Q-light expanded its product range and made necessary changes to its sales organization at the beginning of 2024, aiming to grow in selected commercial project segments with better underlying market conditions.
Exit
Throughout 2024, a challenging competitive landscape with few projects and repeated delays, as well as slower than expected results from internal development and improvement initiatives, resulted in significantly lower than expected revenue. This trend intensified in the fall, typically the company’s peak season for lighting sales.
During the fall, intensive work was carried out on a comprehensive rescue plan for Q-Light, but the company’s financial and liquidity outlook continued to deteriorate. There was constructive dialogue between the company’s bank and owners to find a solution, but due to declining sales and weakened prospects for 2025, the conditions for the rescue plan were no longer viable.
Given the way the situation developed, the board had to file for bankruptcy in December 2024.