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Russia's MTS Acquires Controlling Stake in Blockchain Platform Factorin

Russia's MTS Acquires Controlling Stake in Blockchain Platform Factorin Image Credit: Factorin

Mobile TeleSystems, Russia’s largest mobile operator, together with the international venture capital firm Digital Horizon, announced the acquisition of 51% of the equity capital of Factorin for RUB 867 m, including a RUB 350 m cash-in investment to support the startup’s continued development.

Factorin is the developer and owner of an innovative blockchain-based platform for trade finance transactions with a focus on supply chain finance and invoice factoring. The acquisition is aimed at expanding MTS Group’s portfolio of digital financial services for B2B clients.

Factorin’s innovative platform provides a comprehensive solution for supply chain financing by digitizing financial interactions between buyers, suppliers, and banks. The platform provides factoring and other trade finance services for leading Russian retailers and their suppliers, including Magnit (Tander JSC) and Dixy Group as well as MTS’s own retail network (RTC).

In addition, MTS has concluded an option agreement providing for the Company to retain a call option to acquire the remaining equity in Factorin from the startup’s founders in the future.

Ilya Filatov, MTS VP for Financial Services and MTS Bank CEO
This deal is yet another major step forward in the development of digital products and enhanced services for our B2B customers. Factorin is not only a fast-growing and high-tech trade finance platform, it provides a unique offering that fully leverages all of the advantages of blockchain technology. 

Andrei Maklin, Factorin Co-Founder & CEO
Factorin is leveraging the latest innovations to not only offer our customers a full spectrum of advanced trade financing solutions, but also launch fundamentally new products that would be impossible to build using traditional technologies. For example, we are enabling corporate clients to set up their own platforms that provide their suppliers and buyers with attractive offers from a variety of financing providers.

Author

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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