Ukrainian ride-hailing service Uklon eyes expansion into Kazakhstan

Ukrainian telecom operator Kyivstar, owned by global telecommunications company Veon, has negotiated the purchase of Ukrainian ride-hailing and delivery platform Uklon ahead of its planned Nasdaq IPO. Veon CEO Kaan Terzioglu said Uklon could expand into new markets, including Kazakhstan, Pakistan and Bangladesh.

Kyivstar will acquire a 97% stake in Uklon for $155.2 million. The ride-hailing service, which operates in 27 Ukrainian cities and expanded into Uzbekistan in 2023, also generates revenue through advertising placed on cars and within its app.

The acquisition of this non-core asset follows Kyivstar’s agreement to list on Nasdaq. The telecom operator has been preliminarily valued at $2.21 billion and plans to go public through a special purpose acquisition company (SPAC), often referred to as a «blank-check company,» which allows firms to bypass the traditional IPO process.

Veon, which has 23 million subscribers in Ukraine, also signed a partnership agreement with Elon Musk’s Starlink in December to introduce satellite-based cellular communications in the country.

In Kazakhstan, Veon operates through telecom company Kar-Tel under the Beeline Kazakhstan brand. The group also provides communication services in Kyrgyzstan and Uzbekistan.

According to its website, Veon is owned by Luxembourg-based Letterone Investment Holdings S.A. (45.5%), The Stichting (7.9%), Lingotto Investment Management LLP (7.2%) and Shah Capital Management Inc. (6.8%).