Based in Daugavpils, Galo Group is one of those Latvian companies that has grown from a small idea into a rapidly expanding export manufacturer with ambitions in the technology sector. Founded and developed by Diana Arkhangelskaya, the company began its entrepreneurial journey by producing educational wooden toys and products designed to encourage active play and child development. Today, almost all of its products are exported, primarily to the United Kingdom and Sweden, while the company is simultaneously developing its most ambitious project to date – PLAI Cube, an AI-powered, voice-controlled creativity tool for children.
Diana founded Galo Group almost six years ago. Her decision to start the business was inspired by personal experience and by observing the development of her youngest son. While searching for natural, sensory-friendly, and educational toys that would help children express their creativity and better explore the world around them, she realised there was an opportunity to create such products herself.
The company’s first products were magnetic wooden construction sets and educational toys designed to encourage children’s creativity, imagination, and independent thinking through open-ended play. Particular attention was also paid to safety and the use of natural materials. The toys are made from wood, finished with natural oils, and feature magnets securely enclosed within the components. Every element has been carefully designed in terms of size and shape to minimise choking risks and ensure the toys are safe even for younger children.
“We wanted to create something natural, warm, and educational that helps children develop and create independently. From the very beginning, it was important for us to design products that do not limit a child’s imagination but instead encourage them to experiment, think creatively, and build their own worlds,” says the company’s founder.
Over the following years, Galo Group gradually expanded into wooden products for outdoor play and children’s activities, manufacturing outdoor furniture as well as a variety of interactive play elements. According to the company, all of its product lines are united by a common philosophy: fostering children’s creativity, curiosity, and independent thinking through free play, natural materials, and thoughtful design.
Today, the company employs 20 people, with the vast majority of its production destined for export markets. Approximately 99% of its products are sold abroad, primarily in the United Kingdom and Sweden, where Galo Group works with several partners to manufacture products under private-label brands. This business model has enabled the company to build valuable expertise in exporting, manufacturing processes, and meeting international customer requirements while gradually developing its own products and brand.
The company has experienced rapid growth in recent years. Between 2023 and 2025, as exports and international partnerships expanded, its annual turnover increased almost fivefold.
Alongside its core manufacturing business, Galo Group is now actively developing its most innovative product – PLAI Cube. The device is a voice-controlled AI tool that enables children to create games, educational content, and digital worlds using only their voice.
The wooden cube incorporates a display, microphone, speaker, and motion sensor. A child can simply ask it to create a game, display the alphabet, explain the phases of the moon, or generate other educational content, then continue refining and expanding the results through conversation. According to the company, the product’s objective is not merely to introduce children to artificial intelligence but to teach them how to think creatively and communicate effectively with AI systems.
“With this tool, we want to help children become creators rather than passive users of technology. We see how rapidly artificial intelligence is evolving, and we believe it will be increasingly important for children not only to use these technologies but also to learn how to collaborate with them creatively,” says Arkhangelskaya.
In developing PLAI Cube, the company also collaborates with universities and organisations working with children on the autism spectrum, aiming to create an accessible and inclusive product that meets the needs of a wide range of children.
PLAI Cube prototypes have already been presented at several major international events, including the Nuremberg Toy Fair, Web Summit in Portugal, and technology conferences in Dubai, where the product has attracted interest from potential business partners and representatives of the education sector.
The company is currently continuing the technological development of PLAI Cube while preparing the first small production batch, which will represent the next step towards wider commercialisation.
Support provided by the Investment and Development Agency of Latvia (LIAA) has also played an important role in the company’s development. Galo Group has benefited from business incubation programmes, export promotion activities, participation in international trade fairs, and support for prototype development. According to the company’s founder, the greatest value has come not only from financial assistance but also from access to mentors, professional networks, and expert knowledge that have helped the company grow and develop new products for international markets.
This article has been prepared within the framework of the project “Innovative Entrepreneurship Development for SMEs”, co-financed by the European Regional Development Fund and the European Union.
