ISTANBUL: Turkish e-commerce firm Trendyol, backed by Chinese internet giant Alibaba, is in discussions to raise US$2 billion from investors, two sources with direct knowledge of the matter told Reuters.
Trendyol, one of Turkey's best known e-commerce platforms, has drawn backing from foreign investors and holds a leading position in Turkey's fragmented e-commerce market.
"Trendyol is in discussions to raise US$2 billion from global investors," said one of the sources, speaking on condition of anonymity.
SoftBank and private equity firm General Atlantic were involved in the talks for the investment, three sources said.
Trendyol was not available for comment. SoftBank and General Atlantic declined to comment.
The company, which is expected to achieve US$10 billion gross merchandise value (GMV) this year, was advised by Citi, the source said, adding that the fundraising is expected to close by the end of this month.
Citi declined to comment.
"The fundraise is expected to close in June and aims to diversify the shareholding base prior to the company's planned IPO in 2023," the source said.
In April, Alibaba, which bought a majority stake in Trendyol in 2018, increased its stake to 86.5per cent in a capital increase, according to the country's trade registry.
(Additional reporting by Can Sezer; Writing by Ezgi Erkoyun; Editing by Dominic Evans and Richard Pullin)