Russia telecom operator MTS, together with the international venture capital firm Digital Horizon, announced the acquisition of 51 percent of the equity capital of Factorin by MTS for RUB 867 million. This includes a RUB 350 million cash-in investment to support the blockchain startup’s continued development.
Factorin is the developer and owner of an innovative blockchain-based platform for trade finance transactions with a focus on supply chain finance and invoice factoring. The acquisition is aimed at expanding MTS Group’s portfolio of digital financial services for B2B clients.
Factorin’s platform provides a solution for supply chain financing by digitising financial interactions between buyers, suppliers, and banks. The platform provides factoring and other trade finance services for leading Russian retailers and their suppliers, including Magnit (Tander) and Dixy Group as well as MTS’s own retail network (RTC).
In addition, MTS has concluded an agreement for a call option to acquire the remaining equity in Factorin from the startup’s founders in the future.
