Kyivstar bought the Uklon service for $155.2 million – a record deal for Ukraine for the program

One of the largest telecommunications operators in Ukraine, Kyivstar, announced the acquisition of 97% of the corporate rights of the Uklon service for online car booking. The transaction amount was $155.2 million. Kyivstar and Uklon will continue to operate as separate companies. According to the CEO of Uklon, the entire team will remain in full force, and he will continue to lead the company. The business will be focused on developing services both in Ukraine and in international markets.

This is one of the largest deals in the Ukrainian IT sector in recent times, which is of strategic importance for Kyivstar in the development of digital services. Financial details of the deal are not disclosed, but it is part of the general investment policy of the VEON group, which plans to invest $1 billion in digital technologies in Ukraine during 2023-2027.

The purchase of Uklon allows Kyivstar to expand the list of its services beyond mobile communications and the Internet, integrating car ordering, delivery and advertising services (Uklon Ads). The service operates in 27 cities of Ukraine, as well as in Tashkent (Uzbekistan). Uklon fulfills more than 10 million orders per month, and the number of drivers using the platform exceeds 100 thousand.

Kyivstar CEO Oleksandr Komarov noted that this agreement will contribute to the expansion of the business of both companies, the emergence of new services and the acceleration of digital changes in the market. At the same time, Uklon will retain its brand and continue to operate in its current format. The management team headed by CEO Serhiy Grishkov will remain unchanged.

For users, such cooperation may mean the emergence of special offers for Kyivstar subscribers, the integration of Uklon into the operator’s services and the expansion of the geography of the service. Increased investment in platform development is also expected, which may affect the quality of services, driver support and the implementation of new features.

The transaction is scheduled to close in April 2025, subject to completion of all legal procedures. Dragon Capital acted as Uklon’s financial advisor in this transaction.