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Ulmart, Russia's leading online retailer, seeks investment

0 11 March 2014

Russian e-commerce companies have raised some big investment rounds in recent years, with Ozon raising $100 million in 2011, only for its record to be eclipsed by Lamoda's $130 million round in 2013. Another big deal could be just around the corner as Ulmart, the leading online Russian retailer by annual sales, is looking to sell a 10-15% in the company to a strategic investor. Company representatives have recently returned from America, where they met with leading funds including Goldman Sachs and Moon Capital Management, and they have further meetings with European and Asian investors planned for the near future. 

The company, which recently topped Forbes’ list of Russia’s top-20 online retailers, needs additional funding in order to further strengthen its position in Russia’s competitive e-commerce market. 

Dmitry Kostigin, a member of Ulmart's board of directors, told CNews that 

“we would like to sell 10-15% of the company to a strategic investor. The funds would be used to develop our logistics infrastructure, including order processing and distribution centres. This will help us to strengthen our leading position in the Russian e-commerce centre for the foreseeable future.”

In the USA the Ulmart delegation met with Goldman Sachs Investment Strategies, Blackrock Investment Management, Moon Capital Management, Tiger Global Management, Lazard Asset Management and Thornburg Investment Management.

However, the company’s search is not restricted to North America. Brian Kin, Ulmart’s Communications Director told CNews that in March company representatives have meetings planned with a range of European and Asian investors. 

In 2013 Ulmart’s overall revenue increased by 61.4% to over $1 billion. 50% of sales were computer-related products, while 45% were household devices or other digital products. 

In a statement the company’s General Director Sergey Fedorinov made the case for investment in his firm

“Ulmart is the leading internet retailer in Russia, with total annual sales of more than $1 billion. We have succeeded in developing an online shop that is exceptionally well-suited to the Russian market. We have also created an interesting asset for foreign investors in Russia.”

Source: CNews

Top image via Shutterstock

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