MegaFon to Develop Digitization and Blockchain-based Solutions with New Digital Venture

MegaFon to Develop Digitization and Blockchain-based Solutions with New Digital Venture Image Credit: Megafon

Russia's second largest mobile operator MegaFon will setup a JV with Gazprombank, Rostec and USM to develop digital services in the country.

The deal will see Megafon contributing a part of its stake of 5.23% in its subsidiary Mail.Ru Group in the new entity, MF Technologies (MFT). The Operator will then sell 55% of this new company to raise $247.5 million. MTS will sell a 35% stake in MFT to Gazprombank, a 9% stake to USM and an 11% stake to Rostec. 

Jointly with its partners, MegaFon plans to implement a number of digital projects, including creating software products to digitalize the operations of major companies and enterprises, and developing blockchain-based solutions.

The most important project on which active work is already being conducted is the creation of a Financial Digital Platform on the basis of which the parties will develop hi-tech services, including payment, credit and other digital products. The partners will also create a fund, Digital JV, to invest in tech start-ups.

Sergey Soldatenkov, CEO, MegaFon
Today we can observe the integration of efforts of the leaders in the telecom, high-tech and financial sectors to create new digital products and services as a worldwide trendsetter. Therefore, we are to join forces with the leading Russian players in these markets to build a digital bank and be more actively involved in the corporate segment.

Ray is a news editor at The Fast Mode, bringing with him more than 10 years of experience in the wireless industry.

For tips and feedback, email Ray at ray.sharma(at)thefastmode.com, or reach him on LinkedIn @raysharma10, Facebook @1RaySharma

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