UFG backs merger of Rutaxi and Fasten

Details of the deal were not disclosed but according to press reports UFG provided less than $100m in the transaction, with a further round of equity funding planned for up to $200m. The new company will operate under the Fasten brand.

The new company plans to increase the number of orders serviced by 25%, or 1.5 million a day. The investment focus will be primarily on the Russian market, although the company also plans to expand in Kazakhstan and other CIS countries.

Fasten founder Evgeny Lvov will head up the new operation and also acquired a stake in the company.

Previous funding
UFG and VC firm Almaz invested $10m in a series-A for Fasten in November 2016. The company had previously raised venture capital from private investors in the US.

Company
Fasten was founded in Boston in 2014. The company aimed to compete with Uber and Lyft in the city by offering lower access fees to drivers. Rutaxi is headquartered in Ufa, Russia.

According to press reports, Rutaxi carried out around 1 million trips per day in 2016 while Fasten did 200,000-300,000.

People
UFG Private Equity – Artur Akopyan (partner).
Fasten – Evgeny Lvov (CEO).

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