Russian etailer Ulmart is interested in raising $800m (£538m) in financial markets including London to fund growth in its home country.
The etailer would consider selling up to 25% of the business. If a fundraising was successful it would value Ulmart at about $3.2bn (£2.15bn) and help pave the way for a possible IPO in the next few years.
Ulmart investor relations director Brian Kean flew into the City of London from St Petersburg today as part of an ongoing process of meeting potential investors.
Although it is understood there is no rush to close a deal, he told Retail Week there has been serious interest from about half a dozen potential investors ranging from financial institutions to individuals.
Ulmart was founded in 2008. Last year it generated sales, net of VAT, of $1.3bn (£874m) and Kean said it is “EBITDA-positive”.
Although Ulmart is sometimes described as the ‘Amazon of Russia’, it has adopted a strategy different from that of the US Goliath and Russian rivals.
In a similar way to Argos in the UK, Ulmart runs 450 urban and suburban fulfilment centres and smaller ‘outposts’ from which consumers typically collect orders or make purchases using in-store computers.
Kean said Ulmart has the opportunity to carve out an even more powerful position as it expands into new categories such as jewellery and fashion and continues to grow.
He said Ulmart will “be” ecommerce in Russia and, as a result, barriers to entry will be too high for international competitors.
Despite Russia’s political friction with Western powers and the US, which have hit the value of the rouble, consumers remain resilient he said.
Kean said Ulmart’s first-quarter sales were “slightly ahead” and the second quarter has been “right on pace”.
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