Russian e-commerce company Ozon acquires bank, increases investment in financial services

The acquisition of Oney Bank will enable Ozon to rapidly develop new products for its fintech business, thereby expanding its target market. Ozon and Sovcombank announced in a statement that they have signed an acquisition agreement.

Ozon will fully acquire Oney Bank and the transaction will be completed after the Bank of Russia approves it.

"Acquiring a bank will give Ozon more flexibility in launching financial tools for buyers and entrepreneurs," said Vae Hovasapyan, Ozon 's vice president for financial services. "This deal does not mean that Ozon will develop all products independently, and we will continue to actively cooperate with banks and fintech companies."

Regarding the acquisition, he said that transparency and reliability of the acquisition were the main criteria for the deal and that reaching an agreement with Sovocombank was "a great opportunity."

Ozon CEO Alexander Shulgin told the Financial Times in an interview that Ozon also plans to apply for a banking license so that it can provide financial services to buyers and sellers. According to him, this license will allow Ozon to issue loans to sellers on its e-commerce platform.

Ozon's e-commerce platform is one of the company's fastest-growing businesses. In order to attract more sellers, Ozon recently lowered the commission rate for most product categories and allowed sellers to ship their own goods.

Shulgin said Ozon also intends to increase investment in logistics and delivery to beat competitors in the market. Ozon has already doubled its logistics capacity this year and tripled its spending on fulfillment infrastructure. According to Shulgin, it is very important to match capabilities and ambitions.

Ozon raised $990 million in the acquisition. Shulgin claimed that Ozon’s investors are prepared to overlook short-term losses. The CEO pointed out that they understand how much Ozon’s value will grow if it dominates the Russian market, compared to peers in other emerging markets.

Since 2018, Ozon has been developing its own fintech services, including B2C and B2B services, which complement its main business. Ozon provides customers with installment payment plans, as well as Ozon debit cards, cashback cards, etc.