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.
Subscribe to TRBRussia’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.”
