Horizon Capital Invests in Rozetka, Ukrainian E-commerce Leader
Horizon Capital, a leading private equity fund manager, announced today that it acquired a stake in Rozetka, a leading e-commerce company based in Ukraine. The funding for this deal comes from Horizon Capital’s Emerging Europe Growth Fund II (EEGF II). The financial details of the transaction are not disclosed.
Ukraine's e-commerce recorded growth rates of over 30% for the last five years, in US dollar terms, and still retains significant upside potential as both, internet penetration and online shopping share of total retail remain substantially lower than regional peer levels.
The company, led by visionary entrepreneurs, Vladyslav and Iryna Chechotkin, is the indisputable market leader in the fast-growing Ukrainian e-commerce segment. Rozetka has superior brand recognition, top quality service and high customer satisfaction levels. The Company's platform allows customers from all over Ukraine to purchase a wide range of goods and services online – from laptops and smartphones to toys and fishing rods as well as train and airline tickets. According to GfK Ukraine, Rozetka was the most popular internet store in Ukraine in 2014 by a wide margin.
The country offers a true ground-floor opportunity for investors and we are delighted to be investing in Rozetka alongside entrepreneurs who are pioneers in Ukraine's rapidly-growing knowledge economy and committed to further innovation and expansion
"We are extremely delighted to invest in Rozetka", said Lenna Koszarny, Founding Partner and Chief Executive Officer of Horizon Capital. "We share Vladyslav's and Iryna's excitement about the enormous untapped potential of the Ukrainian ecommerce market and firmly believe that Rozetka, as the clear market leader, is best positioned to capture this upside. Their obsession with offering customers superior value through the widest product assortment, excellent service and competitive prices has earned Rozetka their well-deserved #1 position in the market. This is an important investment for us and clearly demonstrates our commitment to, and belief in, the strong upside potential of Ukraine. The country offers a true ground-floor opportunity for investors and we are delighted to be investing in Rozetka alongside entrepreneurs who are pioneers in Ukraine's rapidly-growing knowledge economy and committed to further innovation and expansion".
Vladyslav Chechotkin, CEO and Founder of Rozetka, said: "We are proud of our achievements over the past years when the Company has demonstrated excellent performance and growth. Over these past number of years, since the first talks about a potential partnership with Horizon Capital began, we have developed tremendous respect for the professionalism of their team who share our ambitious vision for Rozetka. This investment will help us to build on our leading position and accelerate future growth. We are committed to continue fulfilling the large untapped potential of the ecommerce market in Ukraine, by continuing to invest in improving our product and service proposition and to keep delighting our customers and partners."
Horizon Capital (www.horizoncapital.com.ua) is a private equity fund manager that originates and manages investments in mid-cap companies with outstanding growth and profit potential in Ukraine and the region. Currently, Horizon Capital manages three funds, Emerging Europe Growth Fund II (EEGF II), Emerging Europe Growth Fund (EEGF) and Western NIS Enterprise Fund (WNISEF), with over $600 million under management.
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