BUSINESS | Jul 27, 2021 | WOZINGA NEWS

MTS telecom in Russia acquires blockchain trade-finance platform Factorin

  • MTS purchased a 51% share in the blockchain trade-finance platform Factorin. 

  •  The firm aims to increase the scope of business-to-business services for corporate clients.

By Marielle Petere Wozinga Journalist

MTS, a telecom firm in Russia, acquires blockchain trade-finance platform Factorin

MTS is a recognized telecom company in Russia. According to Kommersant on Tuesday, the firm purchased a 51% share in the blockchain trade-finance platform Factorin.

Based on the publication, MTS aims to widen the financial operations for corporate clients. Even the financial experts confirm that it will help to decrease the cost of its own business. The firm could also acquire financial gain in a new way.

MTC and the expanding ecosystem

In this case, the operator admitted the reason for getting into an agreement with partnerships. It is due to the hope to buy the remaining share of the founders in the future.

The publication also mentioned the statement of the operator. It said, “the deal aims at expanding the ecosystem of financial service for the corporate clients.”

In addition, the 51% control is worth 867 million rubles ($11.7 million). For the development of the firm, there are 350 million rubles. MTS revealed that the founder and the team of Factorin LLC still possess 25%, and Digital Horizon holds 24%.

The operator and strategic expansion

Alexey Merkutov, the MTS spokesperson, explained CoinDesk. He pointed out the firm acquired a 51% stake in Factorin to increase the scope of business-to-business services for corporate clients. Most importantly, it is for financial technology.

Moreover, Merkutov added to the CoinDesk. He said fintech is the prime strategic growth. He also updated the Q1 2021.

Merkutov mentioned, “Fintech products brought $203 million in additional revenue, which is comparable to the additional revenue by our telecom and retail business.”

In 2020, the operator obtained 86 million mobile phone users, with a $6.7 billion profit. CoinDesk continued the annual report. “2.5 million people use its bank, and 2,000 use its enterprise cloud computing services.”

Lastly, the firm launched a mobile investment app. The media outlet said that it is for retail users and a neobank NUUM.

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