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Ozon secures $50 mln from US investment firm Princeville Capital, $100 mln from existing investors in latest round of financing

March 31, 2020 – Ozon Group, Russia’s leading multicategory e-commerce platform, has announced that it raised $50 million from Princeville Capital, a US-based investment firm, as well as $100 million from existing investors – funds advised by Baring Vostok Capital Partners and Sistema PJSFC. Baring Vostok and Sistema made equal investments. This latest round of financing was secured as a convertible loan that can be turned into equity.

This round of financing was closed earlier this year and will support the Company’s plans to significantly expand its logistics and technology infrastructure in order to further help Ozon meet the needs of its customers across Russia’s 11 time zones. Ozon plans to open at least five new fulfillment hubs in Russia’s regions and grow its last mile logistics network at least threefold in 2020-2021.

Alexander Shulgin, CEO of Ozon, commented: “I’m pleased that this round of funding has underscored the support we enjoy from our existing investors, as well as a new and trusted partner in the U.S. As a leading e-commerce platform growing three times faster than the market, we place our customers – both consumers and marketplace sellers – at the center of all that we do, including tech innovations and infrastructure development. The funding we have raised will allow us to boost the pace and depth of innovation within our company and enhance our commitment to the people we serve across the vast Russian territory.”

Emmanuel DeSousa, Managing Partner at Princeville Capital who joined Ozon’s board said: “As a global technology-focused fund, we look for opportunities around the world. We were very excited to partner with a company like Ozon, with a proven business model and excellent leadership. The Russian e-commerce market is experiencing significant growth driven by the increasing penetration of online sales in an under-developed physical retail market, as well as improving logistics infrastructure. We believe that Ozon is at the forefront of capturing that growth and we look forward to working closely with the Ozon team as they execute on their strategy.”

In 2019, Ozon raised $250 million in funding which have been invested in logistics and tech innovation boosting the company’s growth to more than 90% YoY. In 2019, its team launched a new tech platform for marketplace sellers that offers SMEs a more streamlined experience on the Ozon marketplace. SMEs can use the platform to register with Ozon automatically, manage their products and grow their business, as well as take advantage of analytical and advertising tools that are tailored to their needs. Around 10,000 SMEs already have active sales through Ozon marketplace while more than 20,000 are in the middle of the onboarding process. Ozon marketplace now generates more than 35% of the company’s GMV. By the end of 2019, Ozon already grew by more than three times to 16,651 unique locations enabling approximately 50% of Russians to get orders from the platform within 48 hours. In 2019, Ozon also became the operator of the single largest parcel locker chain in Russia, with 6,897 automated delivery pick-up points by the end of the year.

The new financing will also help expand the total area of Ozon fulfilment centers, grow the company's last-mile infrastructure, develop its tech innovations and launch new products and services for Ozon's B2B and B2C customers.

About Ozon
OZON is the leading e-commerce platform in Russia, growing 90% YoY, or approximately 4 times faster than the overall market. Founded in 1998 as an online book seller, it was among the first companies to go into e-commerce in Russia. It has since transformed into an innovative multi-product platform at the forefront of Russia’s e-commerce market with more than 70% of its assortment delivered by its marketplace partners. OZON delivers more than 200,000 orders daily and offers more than 5 mln. SKUs in 24 categories to its customers. With its 200,000 sq.m of fulfilment capacities, and more than 15,000 pick-up points and lockers, it offers next-day delivery service to some 40% of people in Russia, a country spanning 11 time zones.

About Sistema PJSFC
Sistema PJSFC is a Russian publicly traded diversified holding company serving over 150 million customers in the sectors of telecommunications, high technology, banking, retail, timber processing, agriculture, real estate, tourism and healthcare. The company was founded in 1993. Its revenue in 2018 reached RUB 773.9 bn; its total assets equalled RUB 1.5tn as of 31 December 2018. Sistema’s global depositary receipts are listed under the “SSA” ticker on the London Stock Exchange. Sistema’s ordinary shares are listed under the “AFKS” ticker on the Moscow Exchange. Further information is available at www.sistema.com.

About Baring Vostok
Baring Vostok is a leading private equity firm in Russia. Since 1996, Baring Vostok funds have invested more than USD 500 million in 13 companies operating in consumer goods and services segment. Along with Ozon Baring Vostok holds stakes in VkusVill, Familia, Skyeng, Viasat and others.

About Princeville Capital
Princeville Capital is an investment firm focused on backing rapidly-growing technology-related companies around the world. The firm looks to support entrepreneurs seeking not only capital, but a value-added partner who can help them fulfill their aspirations to create companies of global scale. The firm has a worldwide network of relationships built over decades of experience investing in and advising rapidly growing companies in the technology sector. Princeville Capital has offices in San Francisco, Hong Kong and Amsterdam. Visit www.princeville-capital.com for more information.