Based in Daugavpils, Galo Group has grown within just a few years from a small wooden toy manufacturer into a rapidly expanding export-oriented company with ambitions in the technology sector. The company produces a wide range of wooden products for children, homes, and outdoor spaces, while simultaneously developing an innovative AI-powered voice-controlled device for children, PLAI Cube. Approximately 99% of the company's products are exported, primarily to the United Kingdom and Sweden. Meanwhile, PLAI Cube prototypes have already been showcased at international trade fairs in Nuremberg, Portugal, and Dubai, attracting significant interest from professionals in the technology and education sectors.
Company founder Diana Arkhangelskaya says that the support instruments provided by the Investment and Development Agency of Latvia (LIAA) have played an important role in the company's growth. Galo Group has benefited from the LIAA Daugavpils Business Incubator programme as well as export support initiatives, including assistance for participation in international trade fairs. The company has also received support for the development of the PLAI Cube prototype and its software programming solutions.
"Financial support is, of course, very important. But when you're just starting your business, what you really need is not only grants—you need mentors, knowledge, and a strong support network," says Arkhangelskaya. She notes that access to practical advice and experienced mentors was particularly valuable during the company's early stages, helping the team better understand business processes and international markets.
According to the company's founder, LIAA's support has been valuable not only financially but also organizationally. Participation in international exhibitions through LIAA allowed the company to focus on building relationships with potential customers and partners, while the agency assisted with coordinating many of the logistical aspects of the exhibitions.
"When you organize an exhibition yourself, you have to think about everything—the stand, logistics, product delivery. Working together with LIAA allowed us to concentrate on what mattered most: conversations with customers and business partners," says Arkhangelskaya.
LIAA's support instruments have also contributed to the development of PLAI Cube. The company received funding for prototype development and software programming, which, according to Arkhangelskaya, represents one of the most expensive stages in developing this type of product. She emphasizes that these support mechanisms significantly accelerated the journey from an initial idea to a prototype ready for international presentation.
Arkhangelskaya also highlights the importance of being able to receive support locally. The company works closely with both the LIAA representative office in Daugavpils and experts in Riga, receiving consultations on various business development and financing issues.
"For start-ups especially, it is invaluable to be able to ask questions and receive practical guidance. Sometimes a single conversation is enough to understand how a process can be completed much more efficiently," she says.
This article has been prepared within the framework of the project "Support for Innovative SME Business Development," co-financed by the European Regional Development Fund and the European Union.
