Alibaba pays $728 million to Trendyol
Alibaba has entered into a rapid growth strategy over the last few years and Turkey has been the most important pillar in this strategy. Alibaba received the Competition Authority’s approval on July 24 to become the main shareholder of Trendyol. However, neither the stock price nor the selling price have been disclosed for this transaction. A report from Alibaba for the U.S. Securities and Exchange Commission (SEC), however, revealed the price of the Trendyol acquisition.
Trendyol’s main owner is DSM Grup Danismanlik Iletisim ve Satis Ticaret. Alibaba sat down with DSM Grup for the acquisition of Trendyol. According to the statement made by Alibaba to the SEC, the online retail giant paid $728 million, or TRY 3.6 billion, for Trendyol, buying up the majority of the DSM shares. Thus, Alibaba has been the biggest buyer both in the Turkish economy and internet market.
Is Trendyol the first billion-dollar Turkish company in the online retail sector? What is the share proportion? According to the information supplied by daily DUNYA, this rate is around 75 percent. In other words, Trendyol, now owned by Alibaba, is the first Turkish technology company to reach billion dollars in value. The sale of Trendyol also left the Yemeksepeti operation behind. As you know, in 2015, the entire share of Yemeksepeti was sold over to the world’s largest online food ordering platform, Delivery Hero, valued at $589 million.
So what has made Trendyol so valuable? Founded in 2010, the company has 16 million users and over 90 million monthly visitors. “In terms of digital economies, Turkey is a very exciting market,” Alibaba Group Chairman and Board Member Michael Evans said, adding that Trendyol is the fastest growing e-commerce company in the region. “With this investment, Alibaba will become a partner of a leading market brand under the leadership of a strong management team.”