TECHNOLOGY: In 2021, Mail.Ru And Sber Injected $600 Million In Their Mobility And Foodtech JV

dWeb.News Article from Daniel Webster dWeb.News

dWeb.News Article from Daniel Webster dWeb.News

Last week Mail.ru Group, the LSE-listed Russian Internet major, and Sber (ex-Sberbank), the state-controlled financial and technology giant, announced an injection of 12.2 billion rubles (around $170 million) into their O2O joint venture.

The latest capital increase brought the total amount they put in the JV this year to 43 billion rubles (around $600 million at the current exchange rate). The two partners still own equal stakes (45. 01% after the latest capital injection).

O2O’s shareholders aim to “drive sustainable growth and continue to unlock new market opportunities within e-grocery in particular.” The latest funding will be used to develop further these assets, “including around technology and new hires.”

Mail.ru Group and Sber say they are “pleased with the progress made by the O2O JV since its formation in December 2019.” Gross GMV grew 13 times in 18 months — from 3.4 billion rubles in Q4 2019 to 45.1 billion rubles in Q2 2021 ($54 million and $609 million, respectively, at the exchange rates of these periods).

The JV is still in active investment, but the shareholders are focusing on unit economics and growth. According to Sber’s press release, break-even is expected across all main assets within the next two-three year.”

This JV was created in December 2019 in order to develop assets in the fields of mobility (Citymobil, Citydrive, 2GIS), and foodtech (deliveries: Delivery Club, Local Kitchen, Performance Food, Samokat; restaurant selection: SberFood; restaurant accounting: R_Keeper).

” We have decided to finance a new round because the market is not yet saturated. This will allow us to strengthen our position in food and grocery delivery as well as the taxi and carsharing market. We will be able provide new opportunities to our clients by making our JV services more efficient, technologically advanced, and intuitive,” said Andrey Vanin (senior VP, Head of the Directorate For Ecosystem Development at Sber).

The pandemic has increased structural changes, opening up a larger market and allowing for growth and new opportunities. Particularly, the long-standing cultural barrier surrounding how to eat food has been largely removed. Users are now looking for the fastest and most convenient delivery. Boris Dobrodeev, CEO Mail.ru Group, stated that it is more important than ever to move around in a safe way.

“The commitment of both main shareholders to build a leading local O2O player remains firmly in place,” he added, implicitly dismissing divorce rumors.

O2O’s main competitors are Yandex, a major provider of mobility and food tech services, and Delimobil, a major player on the car-sharing market, which has just filed for an IPO in New York.

More dWeb.News Technology News at https://dweb.news/category/technology-news/

The post TECHNOLOGY: In 2021, Mail.Ru And Sber Injected $600 Million In Their Mobility And Foodtech JV appeared first on dWeb.News dWeb.News from Daniel Webster Publisher dWeb.News – dWeb Local Tech News and Business News

The post TECHNOLOGY: In 2021, Mail.Ru And Sber Injected $600 Million In Their Mobility And Foodtech JV appeared first on dWeb.News dWeb.News from Daniel Webster Publisher dWeb.News – dWeb Local Tech News and Business News

Read More

Section D Digital World Tech News – dWeb.News

More dWeb.News Tech News at https://dweb.news/category/dweb-news/section-d-digital-world-tech-technology-news/

Similar Posts