A joint venture between Alibaba Group, Mail.ru Group, MegaFon and the Russian Direct Investment Fund will soon see the launch of the joint venture AliExpress Russia.
AliExpress Russia Joint Venture close to launch
The Federal Antimonopoly Service of Russia has authorized the joint venture to move forward. Today, Alibaba’s most popular Alibaba-based commercial site, Russia, and its partners will create what they call a single destination for Russian and CIS marketers, consumers and Internet users to communicate, socialize , shop and play games. within the same online ecosystem.
“This partnership will allow the joint venture AliExpress Russia to accelerate the development of the digital consumer economy of Russia and the CIS countries in a way that neither party could accomplish alone. Together, we are in a unique position to offer Russian consumers and neighboring countries an innovative shopping experience by combining social platforms with commerce, and allowing regional brands and SMEs to sell their products locally and globally. ”
– Daniel Zhang, CEO of Alibaba Group
In addition to regulatory approval, the companies signed Wednesday in Moscow “definitive documents” that bring AliExpress Russia’s launch closer. First, they agreed that the joint venture would be majority-owned by Russian shareholders, overseen by a board of directors made up of representatives from RDIF, Alibaba, MegaFon Group and Mail.ru and managed by two co-CEOs. One CEO will be appointed by Alibaba and the other by the Mail.ru group.
In addition, the joint venture AliExpress Russia and the Mail.ru Group will enter into a strategic cooperation agreement covering, inter alia, traffic and product initiatives. The joint venture will also promote its services on the Mail.ru Group’s platforms through proprietary product integration and marketing solutions.
Each shareholder has agreed to make certain contributions to the joint venture, including:
Alibaba will invest $ 100 million and will contribute to AliExpress Russia’s participation in the joint venture. These are Alibaba’s current national and cross-border activities based on AliExpress’s global retail market.
MegaFon will sell its 9.97% economic interest in Mail.ru Group to Alibaba Group in exchange for a 24.3% stake in the joint venture, with 30.2% voting rights.
The Mail.ru Group will bring its e-commerce business to Pandao and cash investments of $ 182 million in exchange for a 15% stake in the joint venture, with 18.7% voting rights.
RDIF will invest $ 100 million in the joint venture and could acquire additional shares of Alibaba’s joint venture for $ 194 million. Upon the exercise of the option to purchase the additional shares of the joint venture, RDIF will hold economic interests and voting interests in the joint venture of 12.9% and 9.6%, respectively.
AliExpress was launched in Russia in 2010 to offer consumers a new selection of affordable products by giving them direct access to the Chinese market. Alibaba later included access to its B2C marketplace, Tmall, via AliExpress Russia.