The logistics company InPost has almost 21,000 post offices across Poland and is actively conquering European markets. And itʼs founder, Rafał Brzoska, is actively involved in the reconstruction of Ukraine. What drives him?
За 107 років існування Forbes логотип змінювався 18 разів, але таким авангардним і вільним світ його бачить вперше. В новому числі журналу Forbes Ukraine: сучасне мистецтво, топ-50 благодійних фондів, альтернативна енергетика, 30 до 30. Замовляйте вже зараз!
«Polish billionaire Rafał Brzoska invests €100 million in Ukraineʼs recovery». News with similar headlines spread across Ukrainian and European media at the end of 2023. Brzoska, the founder of InPost, one of the largest private postal operators in Europe with a capitalization of €8,3 billion, proposed to create a special fund for the reconstruction of Ukraine together with Polish and American businesses. «Reconstruction of Ukraine will cost $700-800 billion, or even more. This is a powerful potential», — he said in an interview with Forbes Polska. If Polish companies manage to contribute 5-7% of this budget, it will be a great opportunity for us, he explained.
Forbes Ukraine spoke to Brzoska about how to attract Western private investment without waiting for the war to end, what he dislikes about Brusselsʼ policies, what Polish investors are looking for in Ukraine, and how Ukrainian businesses can become European.
The interview has been shortened and edited for clarity.
Investing in freedom
Six months ago, you made a statement about the creation of a special fund and that Polish business can and should join in the reconstruction of Ukraine. What is the motivation to invest in a country at war?
A free Ukraine is a critical element of the European community. It is crucial for democracy and security in the whole of Europe. We should support Ukraine not only with arms or financial support for defense, but also by helping to strengthen Ukrainian society, transform and modernise Ukraineʼs economy and fight corruption. With all this in place, Ukraine will be strong enough to defend itself. So this is the story of the fishing rod instead of the fish.
After the fall of the communist regime, we, the Poles, made every effort to move from a controlled to a free-market economy, to create new jobs and attract investment.
Poland is the leader of economic growth in the EU. So this is the right approach.
Now it is time for Ukraine. We see Ukraine not only as a foreign neighbor, we see a country with which we share hundreds of years of common but sometimes quite difficult history. But above all, we see a country that has suffered greatly from the inhumane Russian onslaught. It is hard to imagine that now, in the third decade of the 21st century, Moscow is once again using barbaric methods to take away the freedom of its neighbor. That is why we can and will help Ukraine.
We should support Ukraine not only with arms or financial support for defense, but also by helping to strengthen Ukrainian society, transform and modernise Ukraineʼs economy and fight corruption.
InPost founder Rafał Brzoska
What exactly can Polish entrepreneurs do?
First, to influence American and European politicians. Second, to support every initiative to invest in Ukraine or in Polish projects for Ukraine. All we need is to reassure people that we can end this war by demonstrating unity on the issue of investment. We are talking about providing business with insurance during the war. It should be provided by the US government and the European Commission. This is the only thing holding investors back right now.
How can this be done?
It is very simple. I have participated in a number of discussions about this in Washington and in Europe. We have seized almost €300 billion of Russian assets. They should become the basis of an insurance fund for Ukraine. The Kremlin should be notified that from such and such a day, any damage that the Russian army does to Ukraine will be covered by these frozen assets. End of story. We are not breaking any laws.
The Americans believe that this scenario is possible. Only officials in Brussels are still against its implementation. This €300 billion could stimulate trillions of dollars from private investors to reconstruct Ukraine. Therefore, the issue of frozen assets should be a key one, along with an increase in arms.
Who is Rafał Brzoska?
Rafał Brzoska, 47, is a Polish entrepreneur, founder and president of InPost, which is currently one of the largest logistics operators in Europe. InPost has a market capitalisation of €8,3 billion and is ranked second in the Top 100 Private Companies in Poland. Polish Forbes estimates Brzoskaʼs net worth at €854 million, and he ranks eighth in the ranking of the richest Poles.
In an interview with Forbes Polska in November 2023, you stressed the need to create a sectoral fund for Ukraine. How could it theoretically look and function?
State funds allocate a certain amount of money to stimulate investment from the private sector. Every €100 million of public money can attract five times more private money. The private sector is waiting for the public sector to make a decision. No one is going to invest unless there are guarantees that every investment made on Ukrainian soil will be insured.
The Polish government is developing a similar scheme. According to it, every investment 100 km east of the Polish border will be insured by the Polish government or Polish state-owned banks.
Many Polish funds are already investing in Ukraine, mostly buying shares in Ukrainian companies, mostly IT companies and drone manufacturers. Some, such as InPost, are working with Ukrainian businesses, such as Nova Poshta, to help them gain a foothold in European markets.
You have told that you would like to invest €100 million in one of these funds. What sectors are you interested in?
Many people say that now we need to invest in the defense sector. I belong to a different camp. I support the idea of investing in healthcare, pharmaceuticals and infrastructure, which will help Ukraine build a modern economy in the post-war period.
What matters is not which sector to invest in, but who is going to invest and how much. The role of the government is crucial here. We are not talking about billions here. The starting point can be €200-300 million of public funds, and we will get five times the involvement of the private sector. I donʼt understand what European leaders are waiting for.
I support the idea of investing in healthcare, pharmaceuticals and infrastructure, which will help Ukraine build a modern economy in the post-war period.
InPost founder Rafał Brzoska
Will such funds choose where and how to invest? Or will Ukrainian companies be able to propose investment projects themselves?
No one can identify the strengths and critical areas for investment in Ukraine better than you. The initiative should come from Ukrainian businessmen and entrepreneurs — you have a better sense of the needs of the Ukrainian economy.
Yes, heavy industry is something that should be financed by aid funds. But private investors should invest in the modern economy, which will create competitive advantages for them and Ukraine in other markets. An example is the Ukrainian IT sector. Already, 19% of Ukrainian IT services are sold to foreign markets.
It is about how you can strengthen this advantage. To be even more competitive in the world and offer best-in-class IT services, artificial intelligence, drones, robots.
I would be happy to invest in such Ukrainian companies.
You have emphasised that you see two ways to revive investment in Ukraine. The first is to convince Polish businessmen that they should take part in rebuilding Ukraine together with their American colleagues. The second is to establish a partnership with American corporations. Have you managed to convince anyone yet? Whom exactly and how much money are they willing to invest?
Currently, Polish businesses are ready to invest at least €300 million to €500 million in risky assets in Ukraine. But they should be attracted by banks such as the EBRD or the European Investment Bank to further stimulate the public sector.
Attracting investors from the US is still a question mark. Unfortunately, I donʼt expect us to get anything before the elections. When the situation becomes clearer, it will be more understandable.
But if I were the Ukrainian government, I would now place a big bet on Europe. We need to work harder in Europe and in Brussels. There are more opportunities to speed up the process.
What exactly should the Ukrainian government do?
Involve the EBRD and the European Investment Fund (EIF) more in the process. The EBRD has so far focused on aid initiatives rather than development projects. The EIF, on the other hand, actively supports transformation in the former Soviet Union. There is also the World Bank, but its work is largely guided by the US government.
It is not impossible to get a few hundred million from each of these institutions to create a private state fund that would invest in modern sectors of the Ukrainian economy. Looking at the billions that Europe has already invested in the defense sector.
Which modern sectors of the Ukrainian economy are you talking about investments in? What are these industries?
The IT sector is obvious. But any crisis brings opportunities. The war has helped Ukraine develop developments in the defense sector, drone technology and modern military initiatives. Here, Ukraine can replicate the experience of Israel, where many start-ups and technologies came out of the defense sector.
It is not just about defense and weapons, but about how this defense sector can stimulate the development of the modern economy in the areas of software and hardware, medicine, pharmaceuticals, and artificial intelligence.
This is the most powerful chance for the new modern Ukraine, and it should not be missed.
If you are offered to invest in drone production, do you see the future of this market after the war is over?
The question is not just about the development of the drone market. There is a whole industry developing around it: the production of batteries, sensors, airframes, and communication equipment. All of this can be used in everyday life.
I see this as a huge opportunity for Ukraine. For example, people are scratching their heads as to how you managed to create a modern early warning system from scratch, which you implemented on the basis of GSM transmitters.
Now we need to think about how to commercialise it. How to build a very modern economy based on such developments.
Why not start making money on this after the war? I and other investors would be happy to invest in such developments.
Speaking beyond money as an investment, what added value can investors of your calibre bring to the Ukrainian market?
Firstly, Poland and Polish business are the gateway for Ukraine and Ukrainian business to the European Union. And we will support you in every way possible on your way to EU membership.
We are also a potential gateway for cross-border access of Ukrainian businesses to all European markets, as shown by our cooperation with Nova Poshta.
A close friend of mine has already invested in three IT companies in Ukraine, providing them with jobs and also opening up a whole outsourcing market in Europe, as he provides services to companies in Germany, France, Italy, and the UK. In countries, where it is usually very difficult for Ukrainian companies to simply participate in a tender and win it.
Thanks to this investment, it has become an entry gate. It is currently the best way to promote your product in European markets.
Poland and Polish business are the gateway for Ukraine and Ukrainian business to the European Union. And we will support you in every way possible on your way to EU membership.
InPost founder Rafał Brzoska
How do you see cooperation with Ukrainian businesses in terms of more than just investments or buying shares? For example, how could a Polish business or your company InPost cooperate with the Ukrainian Nova Poshta?
Based on my experience. We contacted the CEO of Nova Poshta and said that we could provide transportation from Europe to Ukraine, from Ukraine to European markets, whenever they want. Using our infrastructure, software, contacts and customers.
In this way, we help the entire Ukrainian society, which is scattered around the world. Especially refugees — by connecting them with their families in Ukraine. With such connections, we increase the likelihood that most of them will return to Ukraine after the war. This will be the main challenge for the Ukrainian government — how to bring these people back to Ukraine. We want them to build the Ukrainian economy in Ukraine, not the Polish, German or French economy.
We are building bridges between companies. But Ukrainian companies need to understand that there are certain conditions and rules in the EU, it is not the domestic Ukrainian market. They need to be followed to succeed.
But we can also help Ukrainian businesses here, because we have transformed ourselves on the way to European membership. We had to adapt, we had to change, we had to accept all the conditions to become a full member of the EU.
So now we can be a bridge for Ukraine and Ukrainian companies to become a powerful, modern player in the European Union.
Do you have any examples where such cooperation really works in practice? Or are we talking about potential opportunities?
In addition to the cooperation between InPost and Nova Poshta, we cooperate with many companies from the defense sector. I am a member of one of the entrepreneurial organisations in Poland. So I can see how these ties are developing.
There are a lot of collaborations, there are some negative aspects that need to be addressed. But there are more positives than tensions. Especially in food production, agriculture, high technology and transport. Where cooperation is only moving forward. Not at the level we would like, but these are the first initiatives that bring positive results.
These are the most visible elements of cooperation. If it is properly established, there are no controversial topics around them.
Rules of expansion
InPost operates in several markets in Europe. Which country has been the most difficult and expensive to expand into?
The domestic Polish market has always been the most expensive for us. We started in 2009 and launched the first post office a year later. We invested in the development of the network and logistics infrastructure.
Outside the local market, our biggest investment was the purchase of Mondial Relay (a French postal company founded in 1997 and operating across Europe — Forbes). It cost us €513 million three years ago. We need about €1 billion more in further investments.
We are now investing heavily in the UK market. Likewise, we already operate in Italy, Spain, Portugal, Belgium, the Netherlands and Luxembourg. We are growing very fast in all key markets, much faster than the market itself.
We have no plans to enter new territories or acquire new businesses. Without this, there is significant potential that needs to be realized. For example, the UK is 10 times bigger than Poland in this sense.
What difficulties can companies face when entering EU markets?
Culture is the main challenge. Many companies with ambitions to invest abroad do not pay attention to this. For us, it is a primary focus. We want the British, French, or Italians to perceive our services properly and use them with pleasure.
Copying a business model that works in one country and integrating it into another is not an option. It is even worse to think that you can run a French company using the resources you have in Poland, for example.
We bring to new markets the know-how and best practices that we have tested in an already established market. It is not always without mistakes, but we learn from them. That is why our business performance is so encouraging. Moreover, the adoption of our logistics solutions, I mean our APM (Automated Parcel Machines), is often much faster than in Poland when we started with our new services. This shows that in Central and Eastern Europe we can develop solutions that are very well received by customers throughout Europe.
Copying a business model that works in one country and integrating it into another is not an option. It is even worse to think that you can run a French company using the resources you have in Poland, for example.
InPost founder Rafał Brzoska
Which country is the most promising for InPost right now?
We pay a lot of attention to Poland to maintain our position and grow faster than the market. Now we are focusing on France. Our company Mondial Relay is the second in this market (the first is the national postal operator LaPoste — Forbes).
Next up is the UK. It is often said that if you can win the competition there, you can win in any market in the world. The UK is very demanding. Many companies are afraid to enter it, especially after Brexit. Given our dynamics in the UK now, this market will become the largest for InPost in the future.
What nuances about the Polish market should Ukrainian companies that would like to start expanding from Poland know?
Legal regulations are crucial here. For example, there are several Polish companies that are currently struggling in the Ukrainian market. This is due to lack of a proper judicial system, corruption, and preference for Ukrainian companies over Polish ones.
This is not a one-way ticket. Everything has to be done bilaterally, because partnership is a mutually beneficial cooperation.
If Ukrainian companies want to be successful and want to have friends on the other side of the border (there shouldnʼt be a border between us, but there is), they have to adapt and change their way of thinking.
What was sometimes possible in Ukraine doesnʼt work in Europe because of the conditions and rules of law. So the sooner Ukrainian companies adopt the European way of doing business, the sooner they will become successful.
An example for me is some Ukrainian IT companies. These guys work as if they were German companies. They have a supervisory board and good management. They know how antitrust laws work, how to pay taxes correctly, and where they get their income from. That is why they adapted very quickly and became successful.
Companies that think they can do business in Europe the old-fashioned way will lose.
InPost is ranked second in the Forbes Polska list of the 100 largest private companies in Poland with a valuation of almost €8 billion. How did you manage to build the company into the largest in Poland and Europe?
Itʼs all about vision and a great team that shares it.
Itʼs all about how you sell. This is a challenge to much bigger and richer established companies from the Western world. We donʼt have many examples of similar companies from Eastern Europe at the moment.
At the start, it is important to create a vision — we can reach their level. And then share it with the team. Attract the best people and create a strong team spirit around this vision. But this is only half the battle. The other half is a lot of luck.
What teamwork strategies work best? Perhaps you have top three principles.
You should always be there for your people. Your office should be open to anyone who wants to talk to you. Even if itʼs a blue collar job. Effective communication comes from the top. If it is not set up correctly, no one will believe the story.
Work hard, be ambitious, and always raise the bar. No matter what you achieve. Even if in the middle of the year or after the first quarter you see that the budget was too conservative, donʼt sit back and implement it. Raise the bar and challenge yourself on how to exceed the budget.
Constantly creating this startup DNA has helped me a lot to be where we are today. Although we are still far from real success. I still believe that the real success is ahead.
Right now, we are about 20% of the way to success. I think we can really challenge the old-fashioned big Western companies.
Itʼs the best example for you, too, that with a lot of faith, hard work, ambition, raising the bar, good team spirit, you can literally achieve more than you can imagine.
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