RNS Number : 2799O
Mail.ru Group Limited
07 October 2021

7th October 2021                                                                                                    For immediate release



Mail.ru Group and Sber provide RUB 12.2bn in business development funding to the O2O JV 


The O2O joint venture focused on transportation and food between Mail.ru Group and Sber has been provided with an additional RUB 12.2bn in financing from both of the partners, which contributed equal amounts.


The shareholders are pleased with the progress made by the O2O JV since its formation in December 2019, with its GMV rising from RUB 3.4bn (gross) in Q4 2019 to RUB 45.1bn (gross) in Q2 2021 (>13x), including the 1.8x YoY increase delivered in Q2 2021. Given the expanded perimeter of the JV in 2020, along with the structural changes and penetration pull-forward seen in light of the pandemic partners recognize the materially higher overall market opportunity. Extra funding is to be used for further advancement of the O2O JV assets, including around technology and new hires, to drive sustainable growth and continue to unlock new market opportunities within e-grocery in particular.  


The new funding in the amount of RUB 12.2bn in total is being provided in the form of equity. Thus, the total investment provided by Sber and Mail.ru Group into the JV amounted to about RUB 43bn in 2021, split equally. Although the JV remains in active investment phase, shareholders are focused on both, growth and unit economics. The break-even across the main assets is anticipated within the coming two-three years.


Following the additional funding Mail.ru Group and Sber will continue to have equal stakes in the JV of 45.01% each with the rest to be potentially allocated for the long-term motivation program to incentivize the O2O platform's employees.


Perimeter of the O2O JV consists of the following assets:


Boris Dobrodeev, CEO (Russia), Mail.ru Group:


"Our long standing strategic focus on the O2O market remains the same. The commitment of both main shareholders to build a leading local O2O player remains firmly in place. The pandemic has accelerated the ongoing structural changes and hence opened a much larger addressable market and with it growth and new areas of opportunity. In particular the long-standing cultural barrier around ways to consume food has largely been removed and users rightly are looking for the best possible speed and convenience around related delivery. We intend to remain at the forefront of this market. Importance of safe and convenient way of moving around has also risen. Additional funding puts us in position to take advantage of the multiple extraordinary growth opportunities we recognize and want to exploit within the space with our partnership able to act quickly and be well-positioned for further market share gains and even deeper technological development".


Andrey Vanin, senior vice president, head of the Directorate for Ecosystem Development, Sber; chairman of the O2O Board of Directors:


"This December, our joint venture turns two, and as the performance of its member companies shows, the decision to create a joint venture in food-tech and urban mobility was a strategically sound one. We accurately predicted the trend and invested in breakthrough industries in a timely manner, combining our competencies, resources, and efforts. Since the market is still far from saturated, we have decided on a new round of financing. This investment will help us strengthen our position in the food and grocery delivery, as well as taxi and carsharing markets. By making our JV services faster and more convenient, technologically advanced, and intuitive, we will be able to provide our clients with new opportunities."


For further information please contact:


Mail.ru Group



Tatiana Volochkovich

Phone: +7 495 725 6357 extension: 3434

Mobile: +7 905 594 6604

Email: t.volochkovich@corp.mail.ru


Sergei Luchin
Mobile: +7 915 223 35 71

Email: s.luchin@corp.mail.ru


PJSC Sberbank


Press office



Cautionary Statement regarding Forward Looking Statements and Disclaimers

This press release contains statements of expectation and other forward-looking statements regarding future events or the future financial performance of the Group. You can identify forward looking statements by terms such as "expect", "believe", "anticipate", "estimate", "forecast", "intend", "will", "could", "may" or "might", the negative of such terms or other similar expressions including "outlook" or "guidance". The forward-looking statements in this release are based upon various assumptions that are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and may be beyond the Group's control. Actual results could differ materially from those discussed in the forward looking statements herein. Many factors could cause actual results to differ materially from those discussed in the forward looking statements included herein, including competition in the marketplace, changes in consumer preferences, the degree of Internet penetration and online advertising in Russia, concerns about data security, claims of intellectual property infringement, adverse media speculation, changes in political, social, legal or economic conditions in Russia, exchange rate fluctuations, and the Group's success in identifying and responding to these and other risks involved in its business, including those referenced under "Risk Factors" in the Group's public filings. The forward-looking statements contained herein speak only as of the date they were made, and the Group does not intend to amend or update these statements except to the extent required by law to reflect events and circumstances occurring after the date hereof.


About Mail.ru Group

Mail.ru Group develops the VK ecosystem helping millions of people with their day-to-day needs online. More than 90% of the Russian internet audience use it every day.

The ecosystem enables people to keep in touch (using social networks OK and VK, messaging apps and email service), play video games (via MY.GAMES), get and offer items and services, browse jobs and hire talent (via Youla and VK Jobs), order food and grocery delivery (via Delivery Club, Samokat and Local Kitchen), get a ride (with Citymobil and Citydrive), master new skills (at GeekBrains, Skillbox and other educational services), buy and sell at AliExpress Russia and fulfill other needs.

The VK ecosystem features a number of shared elements bringing the services together. Users can sign in to different services with a single VK Connect account, pay and earn cash back with the VK Pay platform, get discounts and deals with VK Combo, access their favorite services via the VK Mini Apps platform - and the Marusya voice assistant can help with any task.

The company offers enterprises to employ its dynamic ecosystem to digitize their business processes, providing a range of solutions from online promotion and predictive analytics to corporate social networks, cloud services and enterprise automation.

PJSC Sberbank is Russia's largest bank and a leading global financial institution. Holding almost one-third of aggregate Russian banking sector assets, Sberbank is the key lender to the national economy and one of the biggest deposit takers in Russia. The Government of the Russian Federation represented by the Ministry of Finance of the Russian Federation is the principal shareholder of PJSC Sberbank owning 50% plus one voting share of the bank's authorized capital, with the remaining 50% minus one voting share held by domestic and international investors. Sberbank has customers in 18 countries. The bank has a major distribution network in Russia with about 14,000 branches, while its international operations - subsidiary banks, branches, and chapters - include the UK, US, CIS, Central and Eastern Europe, India, China, and other countries. It holds general banking license No. 1481 dd. August 11, 2015, from the Bank of Russia. Official websites of the bank: www.sberbank.com (Sberbank Group website), www.sberbank.ru.

In 2020 Sberbank underwent a rebranding, offering financial and non-financial services of the bank and Sberbank Group to individual and corporate customers. Today, the Sber ecosystem is a raft of services for life and daily assistance in handling pressing everyday issues for individual customers and businesses. The Sber ecosystem website: www.sber.ru.


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