Moscow, Russia - MTS PJSC (MOEX: MTSS), digital ecosystem, announces plans to invest up to RUB 1 bn in technological business this year. The company plans to invest the whole fund volume in projects that will strengthen ecosystem products and verticals. The amount of investments in one project will be from $0.5 to $5 m.
The fund is focused on startups of Round A+/B having a strategic value for the company’s ecosystem. Among key parameters of project selection are prospects of fast growth and synergy with MTS’s business lines. Investment geography - startups from Russia and the CIS countries.
The main industries for investments are in line with product verticals inside the MTS ecosystem: retail, media, entertainment, cloud services, cybersecurity, tourism, Internet of things, and smart home. A decision about investments is made based on the market size and its growth speed, product protection from competitors, team and terms of transaction.
“Despite the Russian venture market decline that in 2022 was from 55 to 80% by various estimates, MTS does not slow down the investments and continues active work with technological companies. This year, we plan to invest in 3-5 transactions totaling up to RUB 1 bn. We consider mature projects with operating business model and validated customer demand,” says Dmitry Kurin, Director for Innovations and Investments of MTS.
About the MTS Corporate Venture Fund
The MTS corporate venture fund was established in 2019 based on the MTS StartUp Hub Innovation and Investment Center, the main activity areas of which are venture investments and business *collaboration.
Throughout its existence, the MTS corporate fund has invested in 8 technological companies. The fund’s portfolio companies get expert support, access to API, clouds, and sales channels, as well as an opportunity to launch advertising campaigns on the MTS Marketer platform on favorable terms.
*Business collaboration — testing a hypothesis of synergy between MTS and startup based on pilot implementation. Startups get an opportunity to test feasibility of a solution on the company’s infrastructure and support of a certain product vertical. In case of a successful pilot, companies get an opportunity to conclude a long-term contract with MTS’s business divisions and to scale up their solution.
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