In a major move for the Russian e-commerce market, Process announced the acquisition of Avito, Russia’s largest online rating platform. This purchase is one of the largest purchases in the history of the Russian Internet. This is a major investment in the Russian market by Dutch technology investor Prosas. This article explains the shopping list and what it means for the Russian e-commerce market.
Background of Avito and Prosus
Founded in 2007, Avito quickly became the best online dating platform in Russia. The company’s platform allows users to buy and sell goods, services, job ads, and other services. Avito has more than 40 million monthly active users and operates in more than 30 Russian cities.
Prosas is a global technology investment vehicle founded in 2019 by the South African media company Naspers. The company’s portfolio includes investments in Tencent, Delivery Hero, and iFood.
Looking for details
Avito’s acquisition of Prosas includes a 99.6 percent stake in the company in a deal that values Avito at $7.6 billion. This makes it one of the largest Internet transactions in Russian history. They expect to complete the acquisition in the second half of 2021, pending regulatory approval.
Prosas CEO Bob Van Dyke said the acquisition of Avito was a “strategic investment” for the company. Avito’s “strong experience and skilled team in the market and positioning” made the process a worthwhile investment. Interestingly, the trend of the Russian e-commerce market. It is one of the fastest-growing e-commerce markets in the world.
Impact on the Russian e-commerce market
Prosas’ acquisition of Avito, currently the most widely used online dating platform in Russia, is expected to have a major impact on the Russian e-commerce market. And they are waiting for the purchase process to stabilize their position. The deal could put pressure on other e-commerce players in the Russian market, such as Yandex and Mail Dotru.
Analyst, This is one of the fastest-growing e-commerce markets in the world.
In addition, Prinsloo said the acquisition will intensify competition in the Russian e-commerce market. He said this deal will be done. “To put pressure on other players in the market. Because now they have to compete with bigger and stronger players.”
Another impact of this purchase could include the Russian e-commerce market. With big players like Prosas and Avito on the rise, smaller players may need help to compete. It can lead to market consolidation. This will benefit many big players. Or smaller players exit the market.
Process’s $6 billion acquisition of Avito is a major investment in the Russian e-commerce market. They expect the acquisition to strengthen Avito’s position as Russia’s most comprehensive online rating platform. The pressure on other electronic players in the market of this agreement will increase competition in the market and consolidation. The acquisition is expected to be completed in the second half of 2021, and it will be interesting to watch how the Russian e-commerce market develops in the coming months.
One of the challenges that PROSAS may face in the Russian market is understanding the regulatory environment in this country. Russia has a history of tightening its control over foreign technology companies. We have to wait and see how the government reacts. Because foreign investors own most of the country’s big internet companies.
Despite this challenge, hiring Avito is a bold decision by Prosas to change the industry and improve people’s lives.