The entry of the Georgian bank TBC and the Kazakh service Kaspi to the Ukrainian market will contribute to the increase of Ukraine’s rating in the international arena, as well as increase the valuation of similar Ukrainian companies.
This is the opinion of Nykyta Izmaylov, a co-owner of sportbank and a shareholder and former managing partner of the betting company Parimatch. According to him, serving the same customers, working in the same field as TBC and Kaspi, sportbank is able to reach the same level of valuation as they do, and later enter the International Exchange.
“If such players as Kaspi and TBC go to Ukraine, the Ukrainian market will be recognized as an exchange and it will be possible to get a multiplier of not 3-5, but 10-15. In other words, in terms of capital you can be 2-3 times more expensive. If we now estimate sportbank at 50 million, in the future it will cost 150 million,” said Nykyta Izmaylov, the ex-top manager of Parimatch.
According to him, there is a certain threat to competition, but the opportunities for growth still outweigh the risks. This chance to grow in value is much more important than hypothetical competition. At the same time, Izmaylov notes that it will be quite difficult for Kaspi and TBC to work in Ukraine, because they will have to adapt their processes and marketing to operate in a highly competitive Ukrainian market.
“The Ukrainian user is used to working with Visa and Mastercard cards, and Kaspi eradicated the very concept of a card five years ago. After Kaspi began to dominate the market of individuals, they switched to servicing accounts. It is a question of whether they will be able to adapt their processes and marketing to participate in such a competitive field. Considering also open banking and PSD2, this becomes a hard nut to crack. Yes, it will definitely be difficult for them in Ukraine,” Nykyta Izmaylov stressed.
Synopsis: Nykyta Izmaylov is a Ukrainian investor, banker, and founder of the fin-tech Fund N1. The portfolio of Fund N1 includes the neobank sportbank, the payment system Asquad, a startup with the Tap to Phone technology Transenix and other fin-tech projects. From 2012 to 2016, he was the CFO of PMBL (Parimatch) and later became a shareholder of Parimatch.
Original source: https://ukranews.com/en/news/834123-entering-the-ukrainian-market-by-kaspi-and-tbc-will-triple-capitalization-of-sportbank-says-nykyta
