The Chinese tech giant Alibaba has strengthened its ties to the Turkish eCommerce platform Trendyol with a $350 million investment. According to reports, this capital injection gives Alibaba an 86.5 percent stake in Trendyol.
“Founded in 2010 by Demet Suzan Mutlu, Trendyol is Turkey’s largest eCommerce company as well as the largest internet services-based employer,” Tech EU writes. “The company added the red-hot online grocery sector as well as food delivery services to its roster last year and sells, on average, one million products per day.”
Tech Eu further reports that this funding values the Turkish company at $11 billion and that additional investments could be on the way, giving Trendyol a valuation of $15 billion. Bloomberg also reported on Monday (Apr. 26) that Trendyol is seeking an additional $1 billion from U.S. and U.K. investors to support its global expansion plans.
The announcement comes two weeks after Alibaba paid the equivalent of roughly $2.8 billion in China after being fined by a regulator for antitrust violations. That regulator, the State Administration for Market Regulation (SAMR), charged that Alibaba forced merchants to choose the its own eCommerce platform over those of rival firms, a practice that “infringes on the businesses of merchants on the platforms and the legitimate rights and interests of consumers.” While this fine is a record in China, it represents about 4 percent of Alibaba’s top line in a country where antitrust fines are capped at 10 percent of sales.
“Alibaba accepts the penalty with sincerity and will ensure its compliance with determination,” the company said in a release. “To serve its responsibility to society, Alibaba will operate in accordance with the law with the utmost diligence, continue to strengthen its compliance systems and build on growth through innovation.”
Trendyol’s expansion is happening against a backdrop of changing consumer habits when it comes to online buying.
Selected by EFXA