Ozon Holdings stock crashed in the first week of March and was traded for less than $12. Nasdaq had to halt the trading as the decline was huge compared to April 2021 when a unit of share was valuedat more than $62.
The Russia-based e-commerce giant launched its IPO in November 2020 in New York and had invested heavily in the segment. Its unaudited GMV was more than $6 billion last year and the figure was a rise of 125 percent from the previous year. The company received over 220 million orders, which was a jump of three times compared to 2020. It boasted more than 25 million customers a month by late last year.
The growth is believed to be due to the COVID-19 pandemic when people were forced to stay indoors and demand for online businesses grew across the world. The enhanced product ranges simultaneously attracted orders in huge numbers. The assortment was up by seven times year-on-year. With the year-end, the number of individual products exceeded 80 million.
The company is known as the Russian Amazon and the sanctions imposed on Russia by western allies due to war in Ukraine led to the crash of several stocks including that of Ozone.
Ozone raised about $1 billion through the IPO and simultaneously $75 million from issuing bonds. It had invested heavily in logistics capacity expansion throughout 2021. It increased the dark stores, storage warehouses, lockers, courier services, pick-up points and more.
CEO Alexander Shulgin said the results of 2021 were fantastic and the company has cultivated the enhanced shopping habits of customers. He pointed out the incredible progress of Ozon.
The $990 million IPO was highest in Russia after the En+ Group's $1.5 billion from IPO in 2017.
Ozon Holdings was founded in 1998 by a Russia-based Reksoft software company. It is headquartered in Moscow, Russia. It is one of the top three online retail platforms. It is now owned by the Ozon Group, which simultaneously owns a tracking booking online platform and has a stake in Litres, the largest online bookstore in the country.
Meanwhile, the Russia-Ukraine war has entered into the third week and Russia has banned the US president, Canadian prime minister and other top officials of the two countries from entering the country. TheRussian military has struck several residential neighborhoods in Ukraine's capital city Kyiv.
Earlier, the western allies imposed various sanctions on Russia including a ban on the import of oils and removing Russian banks from the SWIFT global payment systems.