Page 124 - RusRPTFeb19

DXC Technology and Russia’s Luxoft, two major, NYSE-listed IT service providers, announced a definitive agreement for DXC to acquire Luxoft, reported East-West Digital News (EWDN) in the first week of January. At $59.00 per share in cash, the deal represents a total equity value of approximately $2bn, according to the press release.
Russia's online apparel retailer Wildberries will become the largest online retailer in Russia with the RUB120bn ($1.8bn) it expects to earn in 2018, a surge of 74% year-on-year, Kommersant daily said on December 17 citing the representatives of the company. "This figure would make Wildberries the leading e-commerce operator in Russia for the third consecutive year and the largest online retailer overall," VTB Capital commented on December 17. The store focuses on non-food categories and covers 1.5mn SKUs from 10,500 suppliers, the bank reminds. Wildberries expects the number of orders to almost double to 80mn in 2018, attributing the growth to expanding the assortment, including with premium brands. Analysts surveyed by Kommersant link the fast expansion of the online retailer to the creation of the federal delivery chain, increasing the assortment, and engaging new audiences, including TV ads.
Russia's blockchain platform Vostok raised $120mn from a group of foreign investors, RBC daily reported on December 19 citing the representative of the platform. Reportedly the platform got backing from over 15 investors in Europe, China, Singapore, and Russia. Vostok develops projects for the state sector and state governance institutions. The investors are interested in the integrations of the closed blockchain solutions. The platform already collaborates with Dom.rf housing institution, state technology agency Rostec Rostec, subsidiary of Sberbank Bi.Zone, and others.
Another major e-commerce player Ozon.ru plans to grow 70-80% to RUB70bn revenues. For Ozon.ru, the main obstacle to growth is the fulfilment programme, the representatives of the company told the daily.
Former top manager of Russia's third largest bank Gazprombank Vladimir Rumyantsev has invested at least $7.6mn-$7.8mn for 17% stake in taxi ordering service CityMobil, Vedomosti daily reported on December 3 citing the founder of the company Aram Arakyelyan (still owns 49% in CityMobil). Earlier in 2018 Russian Internet major Mail.Ru Group along with MegaFon mobile major invested in taxi-aggregator CityMobil. Now two companies control 15.6% and 17.65% in CityMobil, respectively. Reportedly, Rumyantsev was the lead investor in the CityMobil deal through Cyprus- registered WSFIS Global Opportunities Fund. According to Arakyelyan, the fund is a pool of private investors and has "great connections in China, with links to capital." One of the directors of WSFIS Kurt Santey used to be the manager director of Volga Group investment vehicle related to stoligarch Gennady Timchenko. Santey now is affiliated with Chinese Golden Brick Capital that manages over $2.7bn of assets.
Sistema Venture Capitals, the venture fund of multi-industry investment conglomerate AFK Sistema, acquired 7% in Russian online retailer Ozon and became its third largest shareholder with 16.3% stake after Baring Vostok Capital Partners (39.16%) and MTS mobile major (18.69%), Vedomosti daily reported on December 14. Previous reports claimed that Ozon seeks to raise over $200mn in equity to support new investments in logistics and IT. The amount of the deal with Sistema VC was not disclosed. Other shareholders in Ozon include Index Ventures, Alpha Associates, Intel Capital, Cisco Capital,
124 RUSSIA Country Report February 2019 www.intellinews.com