Alibaba joined forces with a state fund and two technology firms in Russia

China’s largest e-commerce firm, Alibaba Group Holding Ltd has joined forces with a state fund and two technology firms in Russia, hoping that access to their client base of more than 100 million people will boost its development.

Alibaba will own 48 percent of AliExpress Russia as a result of a deal signed with Russian Direct Investment Fund, mobile operator Megafon and internet group Mail.ru during Russia’s Eastern Economic Forum on Tuesday, reports Reuters.

The three Russian entities will have a combined 52 percent stake in the e-commerce platform after contributing cash, shares and other assets.

“By partnering with Russia’s leading consumer internet platform, AliExpress Russia will leverage Mail.ru Group’s 100 million internet users across its social media, messaging, e-mail and online games properties,” the companies said.

E-commerce has grown rapidly in Russia in recent years, spurred by improved internet access, with a turnover exceeding $14 billion last year, one-third of which were cross-border deals, according to Russia’s Association of Internet Trade Companies.

Alibaba will fold its AliExpress Russia business into the new JV, while Megafon will swap its 10 percent stake in Mail.ru for a 24 percent stake in AliExpress Russia.

Mail.ru will contribute its Pandao e-commerce business and cash in exchange for a 15 percent stake in AliExpress Russia, and RDIF will acquire a 13 percent stake in AliExpress Russia. Shares in Mail.ru jumped on news of the transaction which is expected to close in the first quarter of 2019.

“Today’s deal gives Mail a stake in what we believe is the best-positioned platform to capitalize on e-commerce in Russia,” analysts at Renaissance Capital said in a note.

The parties will invest hundreds of millions of dollars into the venture, Mail.ru Group Russia CEO Boris Dobrodeev said. The JV also plans to invest into another business together with Mail.ru Group, including foodtech, the companies said.

Avatar

This article has been posted by a News Hour Correspondent. For queries, please contact through [email protected]
No Comments

Translate this News

Join the Facebook Group

Click here to join the Facebook group of News Hour

Popular Posts

Sacred Games exposes Rajshri Deshpande nude [video]
Four Spain attacks suspects to go before judge, eight others killed
Paperfly launches delivery services covering 64 districts in Bangladesh
Hong Kong police shoot protester as protests start working week
Anurag Kashyap shoots Kubra Saith 7 times nude and made her cry for frontal nudity scene [Video]
Still a long way to go in T20 format for Bangladesh

Advertisement

News of the Month

September 2018
S M T W T F S
« Aug   Oct »
 1
2345678
9101112131415
16171819202122
23242526272829
30  
Scroll Up
%d bloggers like this: