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HomeeCommerce NewsRussian e-commerce platform Ozon to rival Amazon with $150 million bet

Russian e-commerce platform Ozon to rival Amazon with $150 million bet

Russian e-commerce platform Ozon

It is known that Amazon is the best e-commerce platform right now and its lead over the other players in the market is something we can’t deny. However, it is not to say that others are not catching up to Amazon and they are just sitting there and letting Amazon go by its business in a merry way. No, that is absolutely not the case and Amazon is also finding a hard time facing challenges from players such as Walmart, Best Buy and Target who are also spending huge amounts of cash to make their e-commerce platform work.

In a new report, Amazon is now facing a challenge not only from the US players but a Russian e-commerce platform is also looking to challenge Amazon at its own game. This is because a $150 million funding has been received by this platform named Ozon. Interestingly, $50 million funding is done by US-based VC Princeville Capital, plus $100 million from existing investors Baring Vostok Capital Partners and Sistema. The round of financing is a convertible loan that can be turned into equity.

In a statement, the new investors said that “The Russian e-commerce market is experiencing significant growth driven by the increasing penetration of online sales in an under-developed physical retail market, as well as improving logistics infrastructure,”. “We believe that Ozon is at the forefront of capturing that growth.”

Adding to the promise of Ozon and Russia’s e-commerce space, the press release reads that the e-commerce platform is growing three times faster than the market pace. Other reported numbers suggest even more growth potential. Around 10,000 SMEs already have active sales through the marketplace, while over 20,000 are currently in the middle of the onboarding process. On the delivery side, Ozon packages can reach around 50 per cent of Russians within 48 hours. Ozon will look to use this funding for logistics and technology infrastructure.

Zen Science
Author: Zen Science