MTS, one of Russia’s largest telecommunications providers, has acquired ownership of Factorin, a trade financing platform.
$11.7 million was spent on a 51 percent share. MTS purchased the stock from Factorin’s parent business, venture capital firm Digital Horizon, which retains a 25% stake. According to the magazine, the Factorin team has the rest.
According to Factorin’s official website, the platform is used by 41 Russian banks and organizations, with monthly transactions totaling $230 million.
According to MTS spokesperson Alexey Merkutov, the acquisition will help the company to expand its business-to-business services for corporate clients, particularly in fintech. Fintech goods are becoming increasingly crucial for MTS’s total business, according to Merkutov:
“Fintech products generated $203 million in additional revenue in the first quarter of 2021, which is comparable to the additional revenue generated by our telecom and retail businesses,” Merkutov added. “Fintech is becoming one of our most important strategic divisions.” MTS already provides trade finance to its MTS Bank clients, and Factorin may become a part of this ecosystem in the future.
MTS announced that in 2020, it served 86 million cellphone users and earned $6.7 billion. 2.5 million people use its bank, and 2,000 individuals utilize its enterprise cloud computing services, according to the annual report. According to the report, the company would launch its own mobile investment platform for retail users as well as a neobank, NUUM, in late 2020.