Kyivstar, the largest mobile operator in Ukraine, has announced the signing of an agreement to acquire 97% of the online taxi service Uklon. The deal, valued at $155.2 million, is set to be closed by April 2025.
Following the agreement, Kyivstar and Uklon will remain separate businesses. Uklon's current CEO, Serhii Hryshkov, will continue leading the company.
For Kyivstar, this investment in Uklon is a strategic move towards developing an integrated digital ecosystem and marks an important step in its non-organic growth, as part of VEON's $1 billion investment commitments for the period from 2023 to 2027.
Kyivstar's CEO, Oleksandr Komarov, emphasized that their strategy goes beyond providing communication services to create a comprehensive digital environment, with Uklon being a leading player in its field. The goal is to strengthen their businesses and develop even more innovative services together, contributing to Ukraine's economy.
The deal aligns with VEON's and Kyivstar's strategy to build a digital operator. The company plans to invest in expanding Uklon’s service and product ecosystem, enhancing synergy between their businesses in Ukraine, and further expanding Uklon to other countries where VEON operates.
For Uklon, this agreement opens up new opportunities for development, including increased investments in digital services and entering new markets with the support of VEON.
Uklon co-founder Dmytro Dubrovskyi expressed confidence that with Kyivstar's support, Uklon would gain additional expertise to further improve its services and products, providing more value to its users and partners.
The agreement is also seen as a positive signal for both Ukrainian and international investors willing to participate in rebuilding Ukraine despite the ongoing war. Dragon Capital acted as the exclusive financial advisor to Uklon in the deal.
As for the financial terms, the deal is valued at approximately 20x EBITDA, according to analyst Oleksandr Parashchiy. However, there are uncertainties about the company's growth projections, which are key to a full evaluation.
The Ukrainian Anti-Monopoly Committee (AMC) has already approved Kyivstar's acquisition of Uklon. The company is also seeking to purchase "MTPK," which owns the online price aggregator Tabletki.ua.
Kyivstar, which serves around 24 million subscribers, is expanding its digital service portfolio, including the Helsi medical platform and Kyivstar TV. In 2024, its revenue grew by 4.7% to 26.86 billion UAH, though its dollar-denominated revenue declined by 4%.
Uklon operates in 27 Ukrainian cities and Bukovel and has more than 100,000 active drivers completing over 10 million orders monthly. The company began expanding internationally in 2023 with a launch in Uzbekistan. Uklon’s 2024 revenue reached 1.717 billion UAH, double that of 2023, while its net profit stood at 232.3 million UAH.
The owners of Uklon are Dmytro and Viktoriya Dubrovskyi, each holding 38.46%, while Vitalii Diatlenko and Serhii Smus hold 11.54% each.
