Page 25 - bne_newspaper_May_03_2019

bne Tech
May 3, 2019 www.intellinews.com I Page 25
Russian e-commerce major Ozon raises another loan for expansion
One of Russia's oldest online market places Ozon raised a RUB10bn ($155mn) convertible loan from its two largest shareholders AFK Sistema multi- industry investment conglomerate and Baring Vostok fund, Vedomosti daily reported on April 29 citing all the participants of the deal.
The funds raised would be used to "support the strategy of aggressive market expansion that was stated by the company in 2018." Ozon has been posting stable results, but revenue growth in the last quarters was clipped by unresolved logistics and infrastructure issues.
In the end of 2018 the company said it will address the issue intending to raise several hundreds of million dollars in equity in 2019 to support new investments in logistics and IT. With giant capital injections in 2011 ($100mn), 2014 ($150mn) and 2018 (up to $92mn), Ozon is one of the most well- funded Russian e-commerce companies.
The online retailer now plans to build a new order processing centre in the Moscow region with a total surface of over 0.1mn square meters, as well as expanding logistics infrastructure in Russian regions.
Previous estimates put the needs of Ozon for additional funding at $200mn. The recent $155mn loan granted by the shareholders confirms
their commitment in seeing Ozon through the infrastructure challenge. Previously Sistema and Baring Vostok Capital Partners (BVCP) said they intend to increase their respective shares to 40% and develop the retailer for an IPO.
bne Tech
We have launched a new publication bneTech
A FREE newsletter covering technology, blockchain, ICOs, TMT and all aspects of the "new economy" in Emerging Europe, Central Asia and MENA.
*Please note by clicking the button you give permission for bne to send you e-mails as per the EU's GDPR rules.
SIGN UP HERE