AliExpress Russia, the eCommerce venture between the Alibaba Group Holding Ltd., China’s global technology company specializing in online retail, and its Russian partners have set a goal of $10 billion in annual revenues by 2022-2023, Reuters reported.
If they succeed, that would be a nearly 67 percent increase from what analysts estimate at $6 billion now.
Dmitry Sergeev, AliExpress’ Russia CEO, did not provide details on this year’s cash flow. But he told Reuters the company might consider an initial public offering (IPO) in three to four years, although he called the existing shareholding structure “optimal.”
“We are completely localizing business and are building a separate company here,” Sergeev said, adding that this meant improving the Russian language search function and expanding the network of local sellers.
Sergeev said AliExpress Russia wants to boost the share of Russian sellers on the platform to 50 percent by 2022-2023, and reach 50 million customers annually.
Moscow’s Higher School of Economics estimated the volume of goods shipped to Russians from abroad was worth $6.5 billion last year, the news service reported.
A Russian Postal Service official said more than 90 percent of foreign shipments are from China, mostly driven by online orders via AliExpress Russia, the report said.
“I believe the value of owning the entire logistics infrastructure is overestimated,” Sergeev said.
Alibaba’s AliExpress debuted in 2010 and is popular in the U.S., Brazil, Russia, France and Spain, offering merchandise such as wireless headphones and jeans. AliExpress is one of the most downloaded eCommerce apps around the world, and it aims to serve international buyers mainly.
Last fall, PYMNTS reported a move that joined the online and offline experience in Latin America, when FinTech firm and payments provider Ebanx announced a collaboration with AliExpress. The company said it is planning to open a store in Curitiba, Brazil which features the AliExpress Shopping Experience.
“AliExpress is one of the most popular eCommerce platforms in Brazil, and we have always explored ways to boost the integration of digital and physical environments, ultimately looking to offer our consumers more choice, fun, and convenience while they shop,” said Kang Huang, the country leader of AliExpress Brazil. “We are excited to join EBANX’s initiative bringing together the online and offline experience.”