M. Teh (Direct Credit)

M.Tekh (Direct Credit Center LLC) will focus on the development of products and IT services for retail, e-commerce, consumer lending and the electronic payment market.

Performance indicators

2022: Revenue growth of 847 %

In 2022, the revenue of M.Tekh, the IT-insourcing company M.Video-Eldorado, grew by 847%, to 2.2 billion rubles, according to data in the database of legal entities "Kontur. Focus." The company ended the reporting period with a net profit of about 168.2 million rubles.

The company's staff for the year grew from 56 to 556 people. At the same time, in Direct Credit Center LLC, through which M.Video-Eldorado owns M.Tekh, on the contrary, the staff decreased by 393 employees. The average headcount in this company in 2022 was 2503 people, according to the Federal Tax Service . The revenue of Director Credit Center LLC in 2022 also decreased - by 23%, to 1.9 billion rubles.

M.Tekh, formed on the basis of the Direct Credit fintech services provider (based on Director Credit LLC), which M.Video-Eldorado acquired in 2021, is responsible for developing the retailer's IT products, launching new solutions, developing a big data office, finding and introducing innovations. The company acts as an external partner for the entire IT development of M.Video-Eldorado, as well as a platform for possible subsequent sales of its own IT solutions to the foreign market.

M.Tekh was formed on the basis of the fintech services provider Direct Credit, which M.Video-Eldorado acquired in 2021 "(photo: Oleg Kharseev/Kommersant)"

In 2022, we created our own IT company M.Tekh, which will focus on the development of products and IT services for retail, e-commerce, consumer lending and the electronic payment market, as well as increase the operational efficiency of the current business of the entire M.Video-Eldorado group. - M.Video-Eldorado Annual Report 2022[1]

It also says that M.Tekh uses mainly cloud infrastructure, microservice architecture and develops about 100 products and services for retail, e-commerce, logistics, marketing, consumer lending and the electronic payment market.

Among the key products of M.Tekh: mobile applications for clients and consultants, web services, fintech services platform, recommendation model for planning assortment, stock, prices and promo, personalized selection service and client chat bot, corporate neural network and biometrics, video analytics, HR tools to improve the efficiency of retail staff.

The M.Tekh product pool is divided into three key domains with a focus on customer services, solutions for working with partners, managing inventory and working capital (Core) and increasing the efficiency of all other processes supporting retail operations (Back).

The company uses data analytics, artificial intelligence and machine learning to develop its products and create new solutions in the retail industry.

History

2022

M.Tekh IT Company Development Plan

On May 11, 2022, the group M of Video El Dorado"" announced that it was planning the development of IT the M.Tekh company TAdviser , which it wrote about the creation of by separating the group's IT-Business into a separate legal entity on May 5, 2022. As of May 11, the group is consulting with regulators on possible IT-Business formats.

According to M.Video-Eldorado, M.Tekh will focus on the development of products and IT services for retail, e-commerce, consumer lending and the electronic payment market and will increase the operational efficiency of the group's current business. It is assumed that M.Tekh will act as an external partner for the entire IT development of M.Video-Eldorado, as well as a platform for possible subsequent sales of its own IT solutions to the foreign market.

As specified in the group, the M.Tekh company will be formed on the basis of the M.Video-Eldorado provider fintech services acquired in 2021 and Direct Credit will be responsible for the development of IT products, the launch of new solutions, office development, big data search and implementation of innovations. It is planned that developers, analysts, testers and other technology experts of M.Video-Eldorado will move to the IT company. The separation of an independent IT company will also make it possible to develop motivation systems and optimize working conditions for the group's IT experts.

In general, it is expected that the creation of a company aimed at the development of IT will allow M.Video-Eldorado to focus on the centralized development and scaling of IT developments with a focus on the high operational efficiency of the group's main business and the quality of its own digital products for employees, buyers and partner companies. The prerequisites for the creation of an IT company in the group were called the digital transformation of M.Video-Eldorado, the increase of its own IT competencies and the transition to a product approach when launching and developing both client and corporate solutions.

In the future, M. Tekh can act as a supplier of individual solutions to the foreign market.

M.Video-Eldorado Group has a recognized IT expertise in the market, the separation of which into a separate company will allow us to more efficiently scale existing developments, increase the transparency of business processes, taking into account the high degree of uncertainty that exists now. We also expect a significant effect of this solution for IT specialists - it is important that everything that is implemented to support this industry is available to our employees, "said Irina Ivanova, director of organizational transformation and personnel.

As of May 2022, M.Video-Eldorado develops more than 100 products and solutions based on data analysis,, and biometrics AI , machine learning using modern microservice and predominantly. cloud infrastructure The Group has created a technology platform OneRetail that provides seamless online and in-store shopping experience and its own financial services platform. The company also focuses on the development of OneRetail solutions on creating convenient tools for vendors and partners of the martketplay. big data The company's office is engaged in the development of recommendation services, assortment planning, personalization tools,. video analysts

M.Video-Eldorado creates IT company to trade its developments

As it became known to TAdviser on May 5, 2022, M.Video-Eldorado has separated the IT-Business into a separate company, which will become an independent player in the market and will provide services to retail companies. According to the source, M.Video-Eldorado is going to sell its internal developments to external customers.

The company has recently gained serious competencies, including in software development. It employs more than a thousand qualified IT specialists. So it is not surprising that now, when the IT industry receives tremendous benefits and opportunities, the company allocates direction to a separate legal entity, this will make it possible not only to optimize taxes, but also to receive additional income through the sale of solutions to third-party customers, "a source told TAdviser.

M.Video-Eldorado refrained from commenting.

M.Video-Eldorado has separated the IT-Business into a separate company. The photo is news.microsoft.com

Earlier, the company has already announced the launch of its own developments on the market, so in October 2021, at a visiting press conference in Tbilisi, Chief information officer Alexander Sokolovsky announced plans to sell video analytics systems.

In April 2022, the company presented a joint electronic trading platform B2B-Center development - cloud service to automate the procurement of B2B Digital Supply Solution. M.Video-Eldorado called the development an analogue, SAP Ariba which is now unavailable in. Russia More details here [1]

2021: Acquisition of Direct Credit credit platform for RUB 1.3 bln by M.Video-Eldorado Group

M of Video El Dorado On September 23, 2021, the Group announced TAdviser the approval by the Board of Directors of the development project within the fintech Group and the acquisition for this purpose of 100% participation credit in the Direct Credit platform. The amount of the transaction can be about 1.3 billion. rubles M.Video Dorado plans to further develop Direct Credit as provider fintech services for the entire retail industry, trade including online and offline lending, payment instruments for customers and partners. It is planned to go through all the necessary corporate procedures and complete the deal by the end of 2021.

M.Video-Eldorado buys Direct Credit credit platform for 1.3 billion rubles to launch fintech platform
Photo source: retail.ru

M.Video-Eldorado on the basis of Direct Credit plans to develop the direction of technological financial services within the framework of an actively growing mobile platform, OneRetail export fintech solutions for everything Russian retail and further increase the share of the credit broker in the POS credit market. Among the Group's fintech projects are the improvement of online lending services for individuals and legal entities, the launch of payment instruments and cash solutions, subscription services. It is expected that the acquisition of the technological platform, which already accounts for a significant share of M.Video-Eldorado credit services, and its integration perimeter of the Group will also allow to quickly improve the quality of customer service and improve economy credit products.

Direct Credit logo in 2021

Direct Credit (Direct Credit Center LLC or Direct Credit Group) is a credit broker in Russia, occupying 25% of the POS lending market as of September 2021. More than a dozen banks and financial institutions are connected to the platform. Among its clients are large and medium-sized retail chains and e-commerce players, including MTS, Ozon, Citylink, Rostelecom, etc. In 2020, about 2 million loans totaling 74.2 billion rubles were issued through Direct Credit, 34% of which are online loans. The company has more than 3,000 employees. Direct Credit Center LLC is owned by the public diversified investment holding SFI.

An independent estimate of the value of the Direct Credit group has been confirmed by the international consulting company KPMG. M.Video-Eldorado plans to use its own funds to finance the transaction. The Group received permission from the FAS to conduct the transaction in accordance with applicable law.

M.Video-Eldorado provides customers with a wide range of credit products from more than ten banks and credit institutions in stores and online, collaborating with both the Direct Credit platform and other partners. The credit platform has a number of significant qualities compared to direct work with banks - the buyer can send an application simultaneously to several banks, which significantly increases the level of approval and improves customer experience. IT solutions used by Direct-Credit and M.Video-Eldorado allow you to receive feedback on an application in a matter of minutes - loan approval takes an average of two minutes in the store and online.

{{quote 'author = said Alexander Izosimov, CEO of M.Video-Eldorado Group. |

The launch of a fintech platform based on a credit service is fully consistent with the strategy of M.Video-Eldorado to create the best customer experience of the OneRetail format, that is, both online and in stores. In 2020, credit sales accounted for 17% of GMV M.Video-Eldorado, and the online lending segment grew most actively, which increased 2.4 times over the year. Integration of Direct Credit services into our technological platform OneRetail both online and in stores allows us to create a hybrid fintech product special for the Russian market, which will be in demand by our customers. }}

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