San Francisco-based Princeville Capital has announced a $50 million investment in Russian online retailer Ozon, which is partly owned by the Russian-based conglomerate Sistema. Ozon, one of Russia’s largest online retailers, has been on a growth spurt over the last few years.
According to Princeville Capital, the fundraising was included in a previously disclosed transaction in which Ozon received $100 million from Sistema and Baring Vostok, both existing shareholders, to aid with growing its technology and logistics infrastructure. The investment comes through a convertible loan that can be turned into equity.
Ozon said Emmanuel DeSousa, managing partner at Princeville Capital, joined its board following the transaction. Sistema’s website said the investment company focuses primarily on “new and innovative industries, with no restrictions on geography or industry.”
Ozon told Reuters earlier in March that it has talked to investment banks about a possible stock market listing. The company also said it plans to spend more than $300 million on logistics in the next two to three years.
The logistics spending will primarily come from existing investors, which include Sistema and investment fund Baring Vostok. But Ozon is also looking into a potential initial public offering (IPO).
Ozon sells everything from kitchen appliances to diapers and children’s clothes. It aims to increase its market share in Russia’s crowded eCommerce sector.
Ozon’s sales rose by 93 percent in 2019, reaching $1.1 billion. Meanwhile, the total amount of orders more than doubled to 32.2 million, according to Reuters.
Princeville Capital’s website says it has “played a part in building and shaping many of the global technology leaders of our time.” Past investments include Alibaba Group, eBay, Facebook and Fitbit.
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