In 2021, Prosus, a global consumer internet group, made headlines by acquiring a controlling stake in Avito, Russia’s largest online classifieds platform. Prosus Chief Executive Officer Bob van Dijk said the purchase was a strategic move to expand Prosus’ portfolio in emerging markets, which has paid off. In a recent Prosus Russia Avito 6BPrinslooBloomberg interview, Prosus Chief Financial Officer Basil Prinsloo revealed that the acquisition has led to a 6-fold growth in Avito’s business, making it one of the fastest-growing companies in Prosus’ portfolio.
Avito’s Growth Trajectory
Founded in 2007, Avito has become a household name in Russia, with over 47 million monthly users and more than 1 billion monthly visits. The platform allows users to buy and sell various goods and services, from electronics and vehicles to real estate and job listings. Over the years, Avito has expanded its reach to 67 cities across Russia and has become the go-to platform for millions of Russians looking to buy or sell something online.
Acquisition by Prosus
In June 2021, Prosus announced it would acquire a controlling stake in Avito for $4.7 billion, making it the largest M&A deal in the Russian internet industry. The acquisition was part of Prosus’ larger strategy to expand its presence in high-growth markets and tap into the growing e-commerce sector in Russia. At the time, Prosus CEO Bob van Dijk stated that “Avito is an outstanding company with a strong brand and leadership position in Russia’s rapidly expanding e-commerce market.”
According to Prinsloo, Prosus’ acquisition of Avito has led to a 6-fold growth in Avito’s business, making it one of the fastest-growing companies in Prosus’ portfolio. He attributed this growth to Avito’s strong market position in Russia and Prosus’ ability to provide Avito with access to capital, technology, and global expertise. Prinsloo also stated that the acquisition has allowed Prosus to expand its reach in Russia and leverage Avito’s user base to offer new products and services.
Prinsloo stated that Prosus is committed to investing in Avito’s growth and expanding its reach in Russia. He noted that the e-commerce market in Russia is still in its early stages, and there is significant potential for Avito to grow and capture more market share. Prinsloo also stated that Prosus is exploring opportunities to expand Avito’s presence in other emerging markets, such as Africa and the Middle East.
Prosus’ acquisition of Avito has proven to be a successful move, with Avito experiencing significant growth in the months following the acquisition. With its strong market position in Russia and Prosus’ backing, Avito is well-positioned to capitalize on the growing e-commerce market in Russia and beyond. As Prosus continues to invest in Avito’s growth, it will be interesting to see how the platform evolves and expands its reach in the future.