The largest mobile operator Kyivstar has announced that it has signed an agreement to buy 97% of the online taxi service Uklon, which it plans to expand to new markets with the help of its parent company VEON.
The deal is worth $155.2 million and is expected to close in April 2025.
After the deal is signed, Kyivstar and Uklon will remain separate businesses. The Uklon team will continue to work under the leadership of the current CEO Sergey Grishkov.
For Kyivstar, the investment in Uklon was a logical step in building an integrated digital ecosystem, as well as an important stage in the inorganic growth and scaling of the business on the way to fulfilling VEON’s investment commitments of $1 billion over 2023-2027, the company said in a statement.
“Our strategy involves not just providing communication, but creating a comprehensive digital environment where electronic communications are the basic platform for innovative services. Uklon is one of the leading players in its field… We have a lot in common, so by joining forces we will be able to strengthen each other and create even more innovative services, investing in the Ukrainian economy together,” said Kyivstar CEO Oleksandr Komarov.
The investment is fully in line with VEON and Kyivstar’s strategy of building a digital operator, added Zoya Dronshkevych, Kyivstar’s Director of Business Development and Corporate Strategy.
“After closing the deal, we will invest in expanding the ecosystem of Uklon services and products, including multifunctional applications for passengers and drivers, in developing synergies between our businesses in Ukraine, in further expansion of Uklon to other countries where VEON operates, as well as new markets where there is potential to create value for customers and shareholders,” she said.
The deal opens new development horizons for Uklon: from increasing strategic investments in digital services and creating additional jobs to entering new markets with the support of global digital operator VEON, the parent company of Kyivstar, the statement said.
“We have always had ambitions to move on, both in Ukraine and in new markets. I am confident that with the support of Kyivstar, Uklon will gain additional capabilities and expertise to further improve our service and products to provide even more value to all our users and partners,” Uklon co-founder Dmytro Dubrovsky said, as quoted by the press service.
The deal is an important signal for Ukrainian and international investors who are ready to join the rebuilding of Ukraine despite the ongoing war, Kyivstar emphasized.
Dragon Capital acted as the exclusive financial advisor to Uklon in the deal.
Commenting on the deal price at Concorde Capital’s request, Oleksandr Parashchiy, head of research at the investment company, said it corresponds to about 20 times EBITDA, based on Uklon’s Ukrainian financial statements.
“It’s not much for this sector, but it’s very generous for Ukraine. The main thing we don’t know for an adequate assessment is what growth rates the company is planning for,” the analyst added.
Another market participant, who asked not to be named, cited Kyivstar’s likely desire to complete the deal before its SPO on NASDAQ and the mobile operator’s significant free cash flow due to currency restrictions imposed by the National Bank as factors that influenced the deal and its price.
Earlier, the Antimonopoly Committee of Ukraine (AMCU) granted Kyivstar permission to acquire online taxi service Uklon: Tech Uklon LLC, Uklon Corporation and Uklon Ukraine. Kyivstar also applied to the AMCU with a second application for the purchase of MTPK LLC, which owns the online service of the price aggregator for medicines Tabletki.ua.
“Kyivstar is the largest mobile operator in Ukraine with about 24 million subscribers. The company’s digital services portfolio includes the digital medical platform Helsi with a registered base of 28 million users and the film and television platform Kyivstar TV. “Kyivstar bought a 69.99% stake in Helsi in August 2022 for UAH 555.74 million.
Kyivstar’s revenue in January-September 2024 increased by 4.7% to UAH 26.86 billion, while in dollars it decreased by 4% to $674 million. For 9 months of 2024, the company reduced EBITDA by 2.6% to UAH 15.13 billion.
Uklon, according to the company, operates in 27 Ukrainian cities and the Bukovel tourist complex and unites more than 100 thousand active partner drivers on the platform, who together fulfill more than 10 million orders per month. In 2023, the company began international expansion by launching an online car ordering service in Uzbekistan.
According to YouControl, Uklon Ukraine LLC ended 2024 with revenues of UAH 1 billion 717.8 billion, which is twice as much as in 2023, and its net profit amounted to UAH 232.3 million against a net loss of UAH 45.4 million in 2023.
The owners of the company are Dmytro and Victoria Dubrovsky – 38.46% each, Vitaliy Dyatlenko and Serhiy Smus – 11.54% each.
On Wednesday, VEON’s share price fluctuated between $45.3-47.0, but overall the change was insignificant – only a 0.09% decrease to $45.94 per share.
Representatives of VEON, the parent company of Kyivstar, the largest Ukrainian mobile operator, who visited Ukraine, confirmed their intention to invest $1 billion in the country in 2023-2027 and to indirectly list Kyivstar on the Nasdaq Stock Exchange (USA).
“Ogi Fabela, Chairman of the Board and Founder of VEON, and Kaan Terzioglu, CEO of VEON, met with the Kyivstar team to commemorate the third anniversary of the war and reaffirm the company’s commitment to invest in the recovery and reconstruction of Ukraine… The delegation emphasized the importance of immediate investment in the country’s recovery and stressed the plans to invest $1 billion in Ukraine over 2023-2027,” the press service of Kyivstar reported. “We are very pleased to announce that the government of Ukraine has decided to invest $1 billion in Ukraine.
According to the press service, representatives of VEON’s top management, together with Kyivstar CEO Oleksandr Komarov, took part in a special meeting of the Yalta European Strategy (YES) held in Kyiv on February 24. During the meetings with government representatives, including Mykhailo Fedorov, Vice Prime Minister for Innovation, Education, Science and Technology and Minister of Digital Transformation, and Oleksiy Chernyshov, Vice Prime Minister and Minister of National Unity, the participants were informed about the work to support the country’s critical communications and digital services sector. The parties discussed the progress of Kyivstar’s indirect listing on the Nasdaq Stock Market LLC.
Fedorov said after the meeting that he discussed possible joint AI projects and the implementation of innovative solutions in the mobile communications sector with Fabela, Terzioglu, and Komarov.
“I met with VEON top management and Kyivstar CEO… In the midst of the war, the company takes a proactive stance and does everything possible to keep Ukrainians connected. Our team is now actively working on the development of artificial intelligence in Ukraine. At a meeting with Auggie Fabella, co-founder and chairman of VEON, VEON CEO Kaan Terzioglu and Kyivstar CEO Oleksandr Komarov focused on possible joint projects with artificial intelligence and the introduction of innovative solutions in the field of mobile communications,” he wrote on Facebook.
In addition, the minister announced the launch of new major projects by Kyivstar, in particular, to provide connectivity to the country’s main highways.
“VEON is deeply committed to Ukraine’s future and the important role that the private sector and international investment must play in rebuilding the country. We are honored to be in Ukraine at this historically important time and to discuss our investment plans that will contribute to the development of Ukraine’s future,” the VEON press service quoted Fabela as saying following his visit to Ukraine.
He emphasized that VEON, together with Kyivstar, will continue to support Ukraine by investing in its digital infrastructure, expanding investment opportunities for the Ukrainian economy and introducing game-changing technologies. In particular, it will continue to develop Starlink’s Direct to Cell satellite communications service.
VEON, headquartered in Dubai, provides digital services to nearly 160 million customers, operating in six countries with more than 7% of the world’s population. VEON’s shares are listed on the Nasdaq Stock Market.
Over the last two years, since 2022, the number of roaming subscribers of Ukraine’s largest mobile operator Kyivstar has grown by 31% to 2.9 million in 2024, 48.2% higher than the average in 2023.
“In 2024, 2.9 million Kyivstar subscribers used the Roaming as Home service, which allows them to stay connected abroad on favorable terms. During the year, the company expanded the list of countries, increased the volume of mobile Internet and added new convenient features, providing comfortable conditions for users,” the operator said in a statement on Friday.
The most active users of the “Roaming as at Home” service were subscribers who were in Poland, Germany, Czech Republic, Romania and Hungary. On average, they used 5 GB of mobile Internet per month and made more than 170 minutes of calls, 85% of them – in the network of Kyivstar, said the press service of the operator.
In 2022, the number of subscribers who used the roaming service was about 2 million, the report said.
In September 2024, at the conference Global Outlook: Fostering unity, organized by the European Business Association (EBA), CEO of Kyivstar Oleksandr Komarov said that the number of users in roaming operator in July of that year increased by 21% compared to the same period in 2023 – up to 1.9 million active subscribers. According to him, more than half of the subscribers using Kyivstar roaming are men. They owned 70% of conditional new sim-cards, which “flashed” in roaming. CEO of the operator expressed hope that over time the number of subscribers in roaming will decrease, but is unlikely to return to the average level of 2023 – 1.4-1.5 million.
Mobile operator Kyivstar wants to buy the online taxi service Uklon. The mobile operator received applications for the acquisition of Ukrainian LLC Tech Uklon, Uklon Corporation, Uklon Ukraine and Cyprus-based UKLON LTD in December 2024, the committee said at the request of Forbes Ukraine.
“The AMCU has received an application for Kyivstar’s permission to acquire control (through Uklon Corporation LLC) over Uklon Ukraine’s assets, which ensure the implementation of activities in ridesharing, delivery and online advertising,” the publication quoted the agency’s response on Friday.
It is noted that the above applications are under consideration by the AMCU.
In December 2024, Uklon co-founder and board member Serhiy Smus noted on Business Breakfast with Volodymyr Fedorin that during its existence, Uklon had received many purchase offers, but none of them were interesting. “If someone makes a good offer, we will consider it,” he said.
The publication informs that, taking into account the military discount, Smus estimated the company at 7-8x EBITDA. Meanwhile, the estimate of the analytical department of Forbes Ukraine suggests that the current price of the company may be $40-80 million.
Kyivstar CEO Oleksandr Komarov told Interfax-Ukraine on January 23 that he confirms plans to invest almost $600 million more in Ukraine by 2027 and is taking steps to expand the business inorganically. According to him, Kyivstar has made a purchase of a small fixed-line operator in 2024.
“We are looking at other goals, including those within the digital ecosystem,” said the CEO of the leading Ukrainian mobile operator.
According to Monobank’s dashboard, its customers spend about 5% of their money on taxis, while Uklon’s share is about 46%.
According to YouControl, Uklon finished the first three quarters of 2024 with revenue of UAH 1.2 billion, which is twice as much as in the same period of 2023.
“Kyivstar, Ukraine’s largest telecommunications operator, and its parent company VEON have confirmed their intention to invest a total of $1 billion in the country between 2023 and 2027, First Vice Prime Minister and Minister of Economy Yulia Svyrydenko said following a meeting on the sidelines of the World Economic Forum (WEF) with VEON CEO and founder Augie Fabella.
“No less important is the potential listing of Kyivstar on Nasdaq, which will open Ukraine’s access to global capital markets. In addition, global technology partnerships with companies such as Starlink will support sustainable growth,” Svyrydenko said in a post on X.
Kyivstar CEO Oleksandr Komarov, who took part in the meeting, toldInterfax-Ukraine on the sidelines of the Davos Ukrainian Breakfast organized by the Pinchuk Foundation that the company has already invested more than $400 million of the $1 billion in investments it had declared.
“We are planning to continue, nothing has changed,” Komarov emphasized, speaking about increasing these investments to $1 billion.
The CEO noted that the first priority is to invest in critical infrastructure, network, and new technologies. According to him, Kyivstar is on track to meet its 2024 target, and the results achieved, in particular in terms of increasing data transfer speeds, are encouraging.
Komarov added that the company is also taking steps towards possible inorganic business expansion. According to him, Kyivstar has made a purchase of a small fixed-line operator in 2024.
“We are looking at other goals, including those within the digital ecosystem,” the CEO said.
He also said that an important task for the Ukrainian government is to attract domestic and foreign investors and unite with business to improve the investment climate and business opportunities.
“Kyivstar – as of September 2024, Kyivstar served about 23.3 million mobile subscribers and more than 1.1 million home Internet subscribers in Ukraine. The company provides services using a wide range of mobile and fixed technologies, including 4G, Big Data, Cloud solutions, cybersecurity services, digital TV, etc.
In mid-January this year, VEON announced the signing of a protocol of intent to place a part of Kyivstar shares on the Nasdaq stock exchange through the SPAC company Cohen Circle Acquisition Corp (CCIRU).
On Friday, Forbes Ukraine reported that Kyivstar had filed an application with the Antimonopoly Committee late last year to buy Uklon, a digital taxi service.
Kyivstar, the largest mobile operator in Ukraine, has signed an agreement with Starlink, a SpaceX company, to introduce Direct to Cell technology in Ukraine, which provides smartphone connectivity in areas where traditional mobile network coverage is not available – via satellite.
“We have signed an agreement with Starlink and are starting to implement the revolutionary Direct to Cell satellite communication in Ukraine… the service is able to provide mobile communication on any 4G smartphone using a satellite signal where there is no traditional coverage from operators, or if the ground network is down due to military and man-made factors,” CEO Alexander Komarov wrote in a Facebook post on Monday.
“Kyivstar plans to launch Starlink Direct to Cell services with SMS and OTT messaging in the fourth quarter of 2025. The next stage will be voice and data communications, the company said.
This is a major investment by Kyivstar in the development of digital infrastructure, improving coverage, providing uninterrupted communication to all Ukrainians and strengthening national security, Komarov emphasized.
Kaan Terzioglu, CEO of Kyivstar’s parent company VEON Group, noted that Kyivstar has done a great job investing in 4G in Ukraine, expanding coverage to remote areas and improving the energy resilience of its network.
“We are pleased to start cooperation with Starlink to make Ukraine one of the world leaders in the implementation of Direct to Cell satellite communications,” Terzioglu was quoted as saying by Kyivstar’s press service.
VEON Chairman of the Board Augie C. Fabella II said that the partnership with SpaceX will allow the company to use space technology.
“This agreement (on the introduction of Direct to Cell technology) marks a transformational year for VEON: from moving its headquarters to Dubai and focusing all operations on the Nasdaq in New York, to strengthening its commitment to innovation and growth in the regions that need it most,” the press service quoted the VEON chairman as saying.
Kyivstar’s press service clarified that Ukraine will be one of the first countries to get access to Starlink’s innovative Direct to Cell service, which will significantly increase the resilience of the national communications infrastructure.
Kyivstar reminded that since 2013, VEON, the parent company of Kyivstar, has already invested more than $10 billion in Ukraine and has committed to invest another $1 billion in the restoration of digital infrastructure in the period from 2023 to 2027.
Earlier it was reported that Kyivstar has launched VoWiFi (Voice over Wi-Fi) service for its subscribers, which allows them to make calls via Wi-Fi even in places with a weak mobile network signal.
“Kyivstar is Ukraine’s largest electronic communications operator with about 23.3 million mobile subscribers and more than 1.1 million Home Internet subscribers. The company is 100% owned by the VEON group of companies, a Dubai-based digital communications operator that provides converged connectivity and digital services to nearly 160 million customers. VEON’s shares are listed on the Nasdaq stock exchange.
Starlink’s direct-to-cell satellites are equipped with advanced eNodeB modems, which enable them to act as cell towers in space.
