Russian e-commerce company Goods lost nearly 300 million yuan last year. Can it rise again after being acquired?

Its report shows that the Goods platform lost a total of 3.085 billion rubles (about 269 million yuan) in 2020 , while the platform lost 2.444 billion rubles (about 213 million yuan) in 2019, and has been in a loss state for two consecutive years.

Goods is an e-commerce company established by the M.Video-Eldorado Group in 2016. It started testing operations the following year and was fully launched in July 2018. The platform products cover electronics, home appliances, children, beauty care, building maintenance, automobiles, outdoor sports, food, clothing and footwear, health, furniture, etc. At the beginning of its establishment, the platform stated that it would never sell its own products and was committed to serving sellers.

Goods official website

Goods has only been fully operational as an e-commerce platform for two years. Although its growth rate is slow, it is generally positive. In 2019, the number of sellers on Goods doubled to 3,000, and its turnover increased threefold to 6 billion rubles. As of January this year, there were about 8,000 sellers on Goods; its turnover in 2020 reached 12.1 billion rubles. In the recent market value ranking of Russian Internet companies released by Forbes, Goods ranked 16th with US$530 million.

Goods ’ parent company, M.Video-Eldorado Group, currently owns 80% of the company, with the remaining 20% ​​held by Goods founder Alexander Tynkovan. But that won’t last long.

At the end of January this year , M.Video-Eldorado Group reached an agreement with Sberbank of Russia to sell its shares in Goods. Sberbank of Russia will acquire the majority stake in Goods for 30 billion rubles (about 2.54 billion yuan).

It is reported that the acquisition will be completed in the first half of this year. After the acquisition is completed, Sberbank of Russia will hold 85% of Goods shares , M.Video-Eldorado Group will hold 10%, and Alexander Tinkovan will hold 5%.

This acquisition is a win-win for Goods and Sberbank. As the largest state-owned commercial bank in Russia, Sberbank will provide support to Goods in terms of funds, users, ecology, management, logistics, etc. After the acquisition, DataInsight expert Fyodor Virin said that with the strong support of Sberbank, the scale of Goods will be able to grow three to four times.

As for the Russian Federal Savings Bank, it has been trying its hand in the e-commerce field in recent years. The acquisition of Goods may allow both of them to make a name for themselves in the Russian e-commerce market.

Russia

Goods

E-commerce