Russian tech giant, Yandex, has decided not to proceed with its purchase of fashion e-commerce player, KupiVIP, according to Russian media reports.
Yandex not only has a widespread technology portfolio that has led it being called “Russia’s Google”, the company’s Yandex.Market also makes it one of Russia’s main e-commerce platform players but its acquisition of KupiVIP was meant to represent the company’s more serious foray into fashion. The initial KupiVIP acquisition (for an undisclosed sum) was announced in late May and was expected to be completed in the third quarter of 2021.
“The company is considering alternative entries into the fashion segment,” a press statement from Yandex on the cancelled deal read in part.
The option to purchase KupiVIP in May did not oblige Yandex.Market to conclude the deal. Following the results of Yandex.Market’s due diligence investigations, the company realised that the asset was not suitable for it, a source told local media.
Further Reading: How to Capture More of Russia’s E-Commerce Market
With Wildberries racing to become Russia’s answer to Amazon, many brands are turning to devoted fashion platforms like Lamoda.ru and Aizel.ru but the market has many challenges.