Alibaba-Backed Trendyol Seeks Over $1 Billion to Fund Growth

(Bloomberg) -- Turkish e-commerce firm Trendyol, which is backed by Chinese online giant Alibaba Group Holding Ltd., is seeking to raise more than $1 billion in a private placement, according to people familiar with the matter.

The fundraising is aimed at investors in the U.K. and the U.S. as the company looks to expand its international footprint, the people said. The proceeds will be used to fund growth and diversify the firm’s shareholder base ahead of a potential initial public offering, the people said.

The deal, which is expected to be completed soon, has already attracted interest from several top international funds, the people said, asking not to be identified because the information is private. Citigroup Inc. is sole adviser on the transaction, the people said.

Alibaba recently invested another $350 million in the Istanbul-based company, raising its stake to almost 87%, according to Turkey’s commercial registry.

Founded in 2010, Trendyol is the largest e-commerce platform in Turkey, according to its website. Over the last three years, the firm grew its gross merchandise value by about 20 times and is on track to do about $10 billion in gross merchandise value in 2021, the people said.

Representatives for Trendyol and Citigroup declined to comment.

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