China's Alibaba Group to Invest $100 million in Russian e-Commerce JV with Megafon

China's Alibaba Group to Invest $100 million in Russian e-Commerce JV with Megafon Image Credit: Mail.ru

Alibaba Group and MegaFon, a pan-Russian mobile operator and Mail.ru Group, the leading internet and IT company in Russia and RDIF, have recently received an approval for a joint venture to launch a leading social commerce joint venture in Russia and the CIS.

As announced in September 2018, the parties agreed to establish a joint venture (the AliExpress Russia JV) on the basis of the existing e-commerce business of AliExpress Russia and the strength of Mail.ru Group’s social and digital businesses. The AliExpress Russia JV creates a value proposition for merchants, consumers and internet users across Russia and the CIS, and accelerates the development of Russia and the region’s growing digital economy by leveraging and integrating the strength and expertise of the new shareholder group. 

Alibaba Group will invest $100 million and contribute AliExpress Russia into the joint venture. This consists of Alibaba Group’s current Russia-based domestic and cross-border operations of the global retail marketplace business of AliExpress. MegaFon will sell its 9.97% economic stake in Mail.ru Group to Alibaba Group in exchange for a 24.3% stake in the AliExpress Russia JV with 30.2% voting rights.

Daniel Zhang, CEO of Alibaba Group
This partnership will enable the AliExpress Russia JV to accelerate the development of the digital consumer economy of Russia and CIS countries in ways that no one party could accomplish alone.

Gevork Vermishyan, CEO of Megafon
E-commerce is a perfect fit for our rapidly developing ecosystem of partnerships to furnish best-in-class financial services, media, and other consumer offerings. This combination is beneficial for all parties, providing unparalleled access to the Russian consumer base.

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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