CEO reveals what was behind the fintech giant’s acquisition of Hepsiburada

Photo by Ilya Kim

Mikhail Lomtadze, CEO and co-founder of Kaspi.kz, has recently explained the reasoning behind his company’s acquisition of a 65% stake in the Turkish marketplace Hepsiburada. The Kazakhstani fintech giant struck the deal last week.

According to Lomtadze, many companies were considered, but Hepsiburada stood out because of its appeal and Turkey’s strong economic and structural performance as its country of origin.

«Making decisions like this requires a 50/50 blend of intuition and analysis. The Turkish market is appealing to us due to its structure, economy and large market size, with over 85 million people. However, the key factor is the company itself. Hepsiburada has strong management and a founder whose vision aligns closely with Kaspi’s,» Lomtadze said at the Kursiv Ecosystems Forum 2024 in Almaty.

He also highlighted that Kaspi.kz plans to share its technology and expertise with Hepsiburada. Lomtadze noted that Kaspi.kz invests around $200 million annually in service development, design and support, which, among other benefits, helps foster the growth of small and medium-sized businesses (SMBs).

«When a country has a company that develops services and makes substantial investments, it boosts the competitiveness of local businesses. Without this, foreign trading platforms would have dominated, leaving our SMBs unable to compete. Now, our entrepreneurs can trade nationwide and deliver goods directly to customers. I believe our technology is the best in the world,» said Lomtadze.

Last week, Kaspi.kz signed a deal to acquire around 65% of Hepsiburada’s shares. The transaction is valued at approximately $1.13 billion and is expected to close in early 2025, pending regulatory approvals from Turkey and the completion of legal procedures. Once this process is over, both companies will retain their brands and operating structures.

Hepsiburada is one of Turkey’s largest online marketplaces. Founded in 2000 by Hanzade Doğan, it became the first and only Turkish company to list its shares on Nasdaq in 2021.