Alibaba has inked a deal with the Russian Direct Investment Fund and Mail.ru to form a joint venture worth $2 billion.
Alibaba will fold its domestic operation of Tmall and AliExpress into the venture called AliExpress Russia, while MegaFon PJSC will sell its 10 percent stake in Mail.ru to Alibaba in exchange for 24% of the venture. The Russian Direct Investment Fund will contribute an unspecified amount in return for a 13 percent stake.
The joint venture seems to be a critical consumer business strategy, as it potentially connects Mail.ru’s consumer services - spanning online food delivery, e-retail in Chinese goods and ride-hailing services - with Alibaba’s e-commerce marketplace platform AliExpress.