Kazakh firm becomes largest shareholder of Türkiye’s e-commerce giant

​​​​​​​By Emir Yildirim

ISTANBUL (AA) - Kazakhstan’s e-commerce group Kaspi.kz became the largest shareholder of Turkish firm, Hepsiburada, according to a statement Friday.

Kaspi.kz and Hepsiburada founder and CEO Hanzade Dogan Boyner, and other shareholders of the Turkish e-commerce giant, signed a definitive agreement for the acquisition of “65.41% of all the total outstanding Class A and B shares,” said the company from Kazakhstan.

The value of the purchase was reported to be approximately $1.1 million to be paid in two installments, subject to customary closing conditions and regulatory approvals in Türkiye, which is expected to take place in the first quarter of next year.

Kaspi.kz said it plans to fund the agreed-upon amount through its operating revenues and assets, while the company may seek financing opportunities depending on market conditions, however, no such agreement or commitment was noted. It came after the Fitch credit rating agency upgraded Kaspi.kz’s rating to investment grade BBB minus.

Mikheil Lomtadze, CEO and co-founder of Kaspi.kz, said in the statement that the two companies want to improve the quality of life of consumers and sellers within the ecosystem.

Lomtadze stated that Hepsiburada is “EBITDA positive,” meaning its coper operations are profitable, stemming from the success of the current shareholders and the administration within the company, “who have focused on profitable growth rather than growth at all costs.”

He noted that Kaspi.kz focuses on providing high-quality services to consumers and business partners, as well as committing to long-term sustainable growth, a common sentiment between the two companies.

“We are excited about the opportunity to join forces with Hepsiburada, one of the leading e-commerce companies in Türkiye. Expanding our addressable market to 100 million people has been an important strategic priority for Kaspi.kz … (and) we believe that small and medium-sized enterprises (SMEs) and entrepreneurs in Kazakhstan and Türkiye will benefit from new opportunities between our countries,” said Lomtadze.

He added that the two companies will maintain their own brands and organizational structures after the transaction, and that the two companies aim to benefit from the technologies and the know-how of each other and continue to develop e-commerce and digital services in Türkiye and Kazakhstan.

Dogan Boyner said in the statement that the deal marks a significant milestone for Hepsiburada, which she founded 24 years ago.

“As a pioneer in Türkiye’s digitalization journey through innovative e-commerce practices, Hepsiburada now embarks on an exciting future with Kaspi.kz, Kazakhstan’s largest company by market capitalization – I’m immensely proud of Hepsiburada’s journey, its approximately 10,000 strong workforce, 101,000 merchants, and 12 million customers,” she said.

“Our entire ecosystem has worked tirelessly to build one of Türkiye’s most powerful brands, (as) in 2021, we achieved the honor of becoming Türkiye’s first and only NASDAQ-listed company, raising our nation’s flag among global tech giants,” she added.

*Writing by Emir Yildirim