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Naqvi ... strategic move.

Abraaj Group buys into Turkish online retailer

ISTANBUL, February 23, 2015

Private equity firm Abraaj Group has bought a minority stake in Hepsiburada.com, one of the largest online retailers in Turkey, from the Dogan family, the Dubai-based firm said on Monday.

No purchase price or stake size was given in the statement, which said that Abraaj would also invest in Evmanya and Altincicadde, furniture and home accessory subsidiaries of Hepsiburada.

Cash from the purchase, made through one of Abraaj's funds, will be used by Hepsiburada to expand its e-commerce operations in Turkey including the building of a single logistics facility with a 100,000-sq-m operational floor to replace its existing five warehouses, the statement said.

The fulfilment center will have unique logistics capabilities to serve Hepsiburada as well as its third party merchants.

Abraaj’s investment will also allow Hepsiburada to make extensive enhancements to its IT infrastructure, launch its third-party marketplace offering, implement best-in-class CRM capabilities, and strengthen its mobile offering.

Abraaj said it was the ninth investment it had made in Turkey, including deals for dairy products maker Yorsan and hospital chain Acibadem.

Arif Naqvi, founder and group chief executive of the Abraaj Group, said: “Our investment in Hepsiburada represents a landmark transaction for Abraaj in the online retail space and marks our ninth investment in Turkey since 2007.”

“Our strong credentials in Turkey are underpinned by proven partnerships, outstanding exits and a robust commitment to value creation, which we will continue to demonstrate using our significant regional and investment expertise to transition Hepsiburada into the next phase of its growth trajectory,” he added.

Hanzade Dogan Boyner, executive chairwoman of Hepsiburada, said: “Our goal at Hepsiburada is to offer a simplified and improved shopping experience to Turkish consumers by providing them with the full gamut of products they need at competitive prices and with value-added services.”

“Looking ahead, we are launching our new marketplace platform in early 2015, fully accessible to third-party merchants, which will underpin the inevitable transformation of the Turkish retail sector.

“We are also committed to a mobile-first approach and will launch our responsive site in the second half of 2015. Our mobile revenues tripled in 2014 and we intend to maintain that momentum. The partnership with Abraaj will further strengthen our leadership position and provide us with a competitive edge as we continue our expansion plans in Turkey and the region,” she added.

Selçuk Yorgancıoğlu, partner and regional head of Turkey and Central Asia at the Abraaj Group, said: “The online retail sector in Turkey has been growing seven times faster than store-based retail since 2007; yet online retail penetration in the country is still low at approximately one fifth of the European levels.”

The Dogan family are controlling shareholders of the Dogan Group, a Turkish conglomerate with interests in media, energy, financial services and tourism. – TradeArabia News Service and Reuters




Tags: Turkey | Abraaj Group | online retailer |

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