The Chinese e-commerce giant Alibaba made an investment in Trendyol in June 2018, but the investment value and other financial details were not disclosed.
We have heard various rumors about the amount of the investment. Now that the figures have been announced; I wish we had written the rumors back then. We have heard the investment to be around 750 million US dollars and it is close to the estimated amount.
You may wonder how we found out about the amount. Here is the answer: we reached the official information announced on the investor relations page of Alibaba Group.
In addition to investment in Trendyol, Alibaba is acquiring shares from Trendyol’s existing investors. The valuation of Trendyol is 728 million US dollars. Here is the announcement of Alibaba:
Trendyol is one of the leading online fashion retailers in Turkey. In June 2018, the Company entered into an agreement under which the Company will invest into Trendyol as well as acquire shares from certain existing investors, representing a controlling equity interest for a cash consideration of US$728 million. The investment underscores the Company’s commitment to international expansion. The completion of this transaction is subject to customary closing conditions.
There has been no official word on the stock share percentage of Alibaba in Trendyol. We assume that it will be around 75 percent. In the light of this information, we may say that Trendyol has reached a valuation of a billion dollars.
We will keep you informed.