The Venture building arm of the international investment firm Digital Horizon announces the sale of a controlling stake in a blockchain platform Factorin to Mobile TeleSystems PJSC, Russia’s largest mobile operator and a leading provider of media and digital services. Factorin, the two year old blockchain-based trade finance platform, was valued at $23 million.
Alan Vaksman, Co-Founder and Managing Partner at Digital Horizon, states, “The financial infrastructure of the future will be powered by blockchain-based solutions. In the coming years, distributed ledger technologies will provide the secure rails to advance trade finance, settlements, custody, and payments in general. Factorin is one of the pioneers that are helping to bring that future into today’s business. Factorin’s blockchain technology solves real business problems, while processing millions of transactions in a highly secure and confidentiality-focused environment. I am pleased that MTS shares this vision with us and embarked on the strategic journey to support the rapid growth of this asset.” .
Ilya Filatov, MTS VP for Financial Services and MTS Bank CEO, added, “This deal is yet another major step forward in the development of digital products and enhanced services for our B2B customers. Factorin is not only a fast-growing and high-tech trade finance platform, it provides a unique offering that fully leverages all of the advantages of blockchain technology. I am confident that the addition of Factorin into MTS Group will accelerate our growth and further reinforce the company’s leading position.”
Andrei Maklin, the Founder of Factorin, comments, “Factorin is leveraging the latest innovations to offer our customers a full spectrum of advanced trade financing solutions. These are fundamentally new products that would be impossible to replicate using traditional technologies. For example, we enable corporate clients to set up their own platforms that provide their suppliers and buyers with attractive offers from a variety of financing providers. In just two years — with the support of Digital Horizon — we have built the largest trade finance platform in Russia. With this deal, we are adding the resources of a powerful partner to help meet the growing market demand as well as unlock additional opportunities and competitive advantages for our users. The combination of MTS’s scale and expertise and Factorin’s blockchain solutions will help us qualitatively transform the entire areas of fintech services for the B2B segment.”