Rozetka, the leading online e-commerce retailer in Ukraine and a portfolio company of private equity firm Horizon Capital’s EEGF II fund, and EVO, an internet company behind the country’s largest online marketplace Prom.ua, have completed a merger.
The combined Rozetka-EVO platform has two billion site visits and facilitates 30 million e-commerce transactions per year over four geographies. Rozetka and Prom consistently rank among the top 10 most-visited websites in Ukraine, reaching over 40 per cent of Ukraine’s internet audience. Ukraine’s e-commerce segment, growing at 26 per cent compound annual growth rate in dollar terms for the past 3 years, is poised for further growth, with online accounting for circa 7 per cent share of total retail in 2018 versus 15-20 per cent share in mature markets. Their merger enables the united platform to expand its product offering, rapidly introduce innovative products and services and provide local SMEs with a superior internet marketplace experience in selling their goods and services online to a national audience.
“The synergies that this merger enables in logistics, IT infrastructure and cooperation with tens of thousands of entrepreneurs, will ensure we continue to be the platform-of-choice for Ukrainian consumers. Internet marketplace is an important growth driver for Rozetka and the merger with EVO provides strong momentum for further expansion of marketplace sales. Ukrainian consumers are the clear winners with this merger, we look forward to continuing to delight our customers in the years ahead,” says Vladyslav Chechotkin, Co-Founder and Chief Executive Officer of Rozetka.
“We have been working for over a decade on products and services that enable entrepreneurs to launch and develop their business easily on the Internet, while also giving buyers an opportunity to purchase a wide selection of goods at competitive prices. With this merger, we intend to bring even greater benefits by building a full-fledged ecosystem of online and offline services around the consumer,” says Mykola Paliienko, Co-Founder and Chief Executive Officer of EVO.
“We are pleased to conclude this landmark merger in Ukraine. Our team has worked very closely with Rozetka founders, supporting major strategic projects including the acquisition of a 50,000 sq m state-of-the-art warehouse, an extensive automation project and now this unprecedented merger. We are proud to be at the forefront of Ukraine’s economic transformation, building new champions in the region,” says Lenna Koszarny, Horizon Capital’s Founding Partner and CEO.
