SoftBank joins two Gulf Wealth funds for its first investment in Turkey
(Bloomberg) – Trendyol, a Turkish e-commerce company backed by Alibaba Group Holding Ltd., raised $ 1.5 billion in its latest round of funding which included SoftBank Group Corp. and two Gulf fortune funds.
The capital increase, co-led by SoftBank’s Vision Fund 2 and General Atlantic, pushed the Istanbul-based company up to a valuation of $ 16.5 billion, according to an emailed statement from the company. The announcement confirmed a Bloomberg News report in July on Trendyol’s plans.
Qatar Investment Authority, the Abu Dhabi sovereign wealth fund ADQ and Princeville Capital also joined the round. This was SoftBank’s first investment in Turkey.
“The proceeds from the financing will support Trendyol’s growth both in Turkey and internationally,” said Demet Mutlu, founder and CEO of the company. “In particular, Trendyol will continue to invest in infrastructure, technology and logistics nationwide, accelerate the digitization of Turkish SMEs.”
The e-commerce company has benefited from an increase in online shopping in Turkey, which jumped 66% last year, according to the Commerce Ministry. Trendyol’s gross merchandise value, a measure of the products it sells on its platform, has grown about 20 times over the past three years and is on track to hit $ 10 billion this year, have people close to the company said in April.
The company could sell shares in two years through an initial public offering, people said at the time.
“Trendyol seamlessly integrates e-commerce, payments and delivery, with deep industry expertise in sectors such as fashion, with a unique consumer offering that we believe will be highly scalable in new markets. and geographic areas, ”said Anthony Doeh, partner of SoftBank Investment Advisers. , which manages the Japanese conglomerate’s Vision Fund 2.
The fundraising made Trendyol Turkey the only “decacorne” with a valuation of more than 10 billion dollars. The company reached a value of $ 9.4 billion earlier this year when its largest shareholder, Alibaba, invested $ 350 million, according to the country’s commercial register.
Borsa Istanbul’s most valued company, steelmaker Eregli Demir ve Celik Fabrikalari AS, has a market capitalization of around $ 8.4 billion.
Tech companies in Turkey have attracted more international investment over the past year, pushing valuations higher. Trendyol’s main rival in Turkey, Hepsiburada, was valued at $ 3.9 billion when it went public on the Nasdaq in early July. Zynga Inc. bought game maker Peak for $ 1.8 billion last year, and Getir, a fast grocery delivery app, got a valuation of $ 7.6 billion in its most recent cycle. investment with private equity firms in June.
Citigroup Inc. is Trendyol’s sole financial advisor and investment agent in the transaction, the statement said.
Mutlu, a Harvard Business School dropout, founded the company in 2010. Trendyol has become Turkey’s largest e-commerce market platform with 34% of the market, according to Euromonitor data. Hepsiburada controls 11% and n11.com 8.3%, followed by EBay Inc.’s GittiGidiyor unit with 4.4%.
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