Wildberries and Russ Group Announce Combination to Build a New Digital Commerce Platform Covering More Than 5.8 Billion People

On June 18, 2024, the Russian online marketplace Wildberries and the outdoor advertising operator Russ Group announced that they are combining forces to build a new-generation digital commerce platform, according to a statement published in Wildberries' official Telegram channel and reported by Interfax.

Two market leaders combine

The joint release states that the consolidation of the leaders of the e-commerce and advertising markets will create a new player in the financial, media and trade-and-industrial sectors of the economy, as well as in internet technologies, logistics, retail and advertising. The legal and financial parameters and the format of the combination were not disclosed in the statement, and the marketplace's press service declined to comment on them.

The stated purpose of the combination is the creation of a modern high-tech digital commerce platform and the provision of seamless tools for the development of small and medium-sized businesses across the countries of the companies' presence.

Combined infrastructure and geography

The combined infrastructure of the companies will include a digital media platform, a network of advertising structures, logistics hubs, warehouses and logistics centres. The geography of the project will cover Russia, the countries of the former CIS and the countries of the Global South — Asia, Africa, the Middle East, India and China — a combined population of more than 5.8 billion people.

• A digital media platform and a network of outdoor advertising structures.
• Logistics hubs, warehouses and logistics centres.
• Coverage of Russia, the CIS countries and Global South markets — more than 5.8 billion people.
• Russ Group operates classic and digital advertising structures in 143 cities, including Moscow and St. Petersburg.
• Advertising placements in the Moscow and St. Petersburg metro systems, on Russian Railways trains and at its stations, and in 18 airports.
• Combined monthly reach of the advertising structures exceeds 85 million people.

Financial profile of the partners

Wildberries LLC, the marketplace's principal legal entity, grew its 2023 revenue by 69.8% to 538.7 billion roubles, with net profit of 18.9 billion roubles. Russ Outdoor LLC, the core company of Russ Group, increased its 2023 revenue by 98.3% to 27.9 billion roubles and posted net profit of 4.86 billion roubles.

Regulator has not received the deal for approval

The press service of Russia's Federal Antimonopoly Service told Interfax that the Wildberries and Russ Group transaction had not been submitted to the regulator for approval. If it is submitted, it will be reviewed in accordance with the law, the service said.

Company and contacts

Wildberries (Wildberries LLC) — Russia's largest online marketplace; Russ Group — an outdoor advertising operator whose core company is Russ Outdoor LLC.

Contacts: Wildberries press service; the combination announcement was published in the company's official Telegram channel. No individual contact persons, phone numbers or e-mail addresses were published in the source.

Website: https://www.wildberries.ru/