Russian electronics retailer acquires 100% stake in Direct Credit
Russian consumer electronics retailer M.Video-Eldorado Group is developing its fintech business by acquiring lending platform Direct Credit for RUB 1.3 billion.
The company plans to expand Direct Credit into a leading fintech provider for the entire ecommerce sector as it looks to provide online and offline lending and payment services for customers and partners.
Russia’s largest credit broker with 25% of the country’s point-of-sale lending market, Direct Credit counts large and medium-sized retail chains and ecommerce businesses as clients, including MTS, Ozon, Citilink, Rostelecom and others.
In addition to developing its fintech business, M.Video-Eldorado said the acquisition will enable it to export fintech solutions to the entire Russian retail market and further increase Direct Credit’s market share in the country for point-of-sale lending.
Alexander Izosimov, chief executive of M.Video-Eldorado Group, said: “In 2020, lending-financed sales accounted for 17% of M.Video-Eldorado’s GMV, with the highest increase recorded in the online lending segment, which grew by 2.4 times year-on-year. The integration of Direct Credit services in the Group’s cutting-edge OneRetail platform, both online and in stores, will enable us to create a hybrid fintech market that is unmatched in the Russian market and that will be in high demand among our customers.”
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