Russian retailer Magnit agrees to buy 100% of marketplace KazanExpress
MOSCOW. Oct 19 (Interfax) - Magnit , one of Russia's largest retailers, has reached an agreement to acquire 100% of marketplace KazanExpress, Magnit reported.
Magnit plans to launch its own marketplace under the name Magnit Market on the basis of the acquired company.
The price of the deal was not disclosed, but Magnit said it plans to finance it with its own funds. The transaction is subject to approval by Russia's Federal Antimonopoly Service, the company said.
Magnit is buying KazanExpress LLC from Aliexpress Russia, which holds a controlling 56.27% stake in the marketplace, as well as from entrepreneur Sergei Yeremeyev, and company founders Linara Khusnullina and Kevin Khanda, who own respectively 33.83%, 7.8% and 2.1%.
Aliexpress Russia invested in KazanExpress in 2021. Commenting on the agreement with Magnit, Aliexpress Russia CEO Sergei Grechin said that after the sale of KazanExpress is closed the company intends to focus on developing its cross-border business and other areas.
Upon completion of the deal, Magnit will acquire all of the marketplace's infrastructure, its technology platform, order pickup points, warehouses, vehicle fleet and intellectual property.
"We plan to make Magnit Market the destination for everything our customers need, from groceries to home improvement products, which can be delivered to pickup points within walking distance from our clients or straight to their door via couriers. We expect our established relationships with the leading suppliers to enable us to create a unique price offering for the most in-demand product categories [...]," Magnit chief e-commerce officer Guvenc Donmez was quoted as saying in the press release.
KazanExpress said on its website that the company was founded in 2017 by Linara Khusnullina and Kevin Khanda. The marketplace offers Chinese and Russian goods with free one-day delivery. KazanExpress LLC nearly quadrupled its revenue to 2.8 billion rubles in 2022, but its loss doubled to 1.6 billion rubles from 807 million rubles in 2021.
According to INFOLine, as of the end of 2022, KazanExpress was the fifth largest marketplace in Russia by number of orders and had an audience of 5 million people per month and an assortment of around 1.5 million SKUs in over 20 categories.