Trendyol Seeks Additional $1 Billion After $350 Million Investment From Alibaba
The Chinese tech giant Alibaba has strengthened its ties to the Turkish eCommerce platform Trendyol with a $350 million investment. According to reports, this capital injection gives Alibaba an 86.5 percent stake in Trendyol.
“Founded in 2010 by Demet Suzan Mutlu, Trendyol is Turkey’s
largest eCommerce company as well as the largest internet services-based
employer,” Tech EU writes. “The company added the red-hot online grocery sector
as well as food delivery services to its roster last year and sells, on
average, one million products per day.”
Tech Eu further reports that this funding values the Turkish
company at $11 billion and that additional investments could be on the way,
giving Trendyol a valuation of $15 billion. Bloomberg also reported on Monday
(Apr. 26) that Trendyol is seeking an additional $1 billion from U.S. and U.K.
investors to support its global expansion plans.
The announcement comes two weeks after Alibaba paid the
equivalent of roughly $2.8 billion in China after being fined by a regulator
for antitrust violations. That regulator, the State Administration for Market
Regulation (SAMR), charged that Alibaba forced merchants to choose the its own
eCommerce platform over those of rival firms, a practice that “infringes on the
businesses of merchants on the platforms and the legitimate rights and
interests of consumers.” While this fine is a record in China, it represents
about 4 percent of Alibaba’s top line in a country where antitrust fines are
capped at 10 percent of sales.
“Alibaba accepts the penalty with sincerity and will ensure
its compliance with determination,” the company said in a release. “To serve
its responsibility to society, Alibaba will operate in accordance with the law
with the utmost diligence, continue to strengthen its compliance systems and
build on growth through innovation.”
Trendyol’s expansion is happening against a backdrop of
changing consumer habits when it comes to online buying.
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