Kyivstar to Buy Uklon

Kyivstar, Ukraine’s largest telecom operator, announced it’s buying Ukrainian taxi and delivery service Uklon for about $150 million.

This is the largest deal in Ukraine’s IT sector since Russia’s full-scale invasion against Ukraine in February, 2022. 

Kyivstar, which is owned by Veon, is acquiring 97% of Uklon’s corporate rights, Uklon CEO Serhii Hryshkov wrote in his LinkedIn post. 

Serhiy Grishkov will remain Uklon’s CEO, Forbes wrote. 

Scroll.media reported Kyivstar bought Uklon for $150 million, adding that the agreement is expected to be signed by mid-April 2025. 

Meanwhile, Forbes Ukraine estimated the deal is worth $155.2 million and wrote it will be signed “on April 2-3.” 

Previously, Forbes Ukraine analysts estimated Uklon’s valuation at $40-80 million.

Uklon’s co-founders have reportedly been looking to exit the business for several years. Over the last year, Uklon’s co-founders Serhii Smus, Vitalii Dyatlenko, Dmytro, and Viktoriia Dubrovskyi have not been involved in operational management, hiring Serhii Hryshkov as CEO instead, Forbes wrote.

What the Uklon-Kyivstar merger mean for Ukraine’s economy 

“Uklon remained an independent business for 15 years, without attracting external investment. The company managed to withstand the entry into the market of the American Uber, the Russian Yandex. Taxi with its unlimited budgets, and the Estonian Bolt, and become the leader of the Ukrainian market,” Scroll.media editor-in-chief Illya Kabachynskyy wrote. 

Uklon is now finding Ukraine’s market too narrow to operate – and a competitor, the Estonian taxi service Bolt is very close to being neck and neck. 

To maintain its leading market position, Uklon needs an investor with a thick wallet – Kyivstar with its 23-million customer base in Ukraine and expertise in foreign markets from its parent company VEON seem a good bet.