The sharp fall in the ruble exchange rate at the end of 2014 led to the fact that China’s bike supplies, which were spiked precisely at this time, were sharply reduced, while the high rate of the beginning of 2015 at the time when advances should be paid and the absolute uncertainty regarding the ruble exchange rate in the future, and as a consequence of the demand for sporting goods in the summer, has led to a sharp decline in the number of bikes that were available for purchase in the summer of 2015. This opportunity became clear in the spring of 2015, when the situation with the course has stabilized. In order to use it, it was necessary to quickly obtain financing for the purchase of bicycle parts for subsequent assembly at Russian plants. Taking into account widespread deterioration in financial results at the end of 2014 – the beginning of 2015, lending was unavailable and, therefore, the mezzanine financing was used, in which, in exchange for a low interest rate on a loan, the shareholders of the bank receive a minority share in the company.
Business: 900 million rubles revenue per year, Ebitda 140 million rubles per year.
Deal: 600 million rubles cash-in for expanding assortment.
Deal Industry: Internet, Retail
Deal Type: Investment