E-commerce company GoverMedia Plus Canada (CSE:MPLS) has announced a joint venture with EXMO Finance, a leading cryptocurrency exchange in Europe with over 1.4 million registered users. The partnership will give GoverMedia users the ability to trade cryptocurrencies from within the company’s online platform for the Russian e-commerce space.
Recently listed on the CSE, GoverMedia is the operator of a fully-owned technology subsidiary based in Kazan, Russia, which aims at tackling the Russian social media and e-commerce market, a space that company CEO Roland Bopp says is vastly underserved.
“The Russian advertisement market has constantly grown the past seven years to reach $21.6 billion in 2017 from $8 billion in 2010,” Bopp says. (All figures in US dollars unless noted otherwise.) “The current internet penetration rate in the Russian federation reminds me of the wireless penetration rate in the country back in the early 2000s. At the time I was involved in Megafon and we saw a tremendous opportunity in the Russian wireless market, as the penetration rate was far behind its western peers. I am confident the same growth pattern will be replicated in the online markets in the next five to ten years.”
Bopp says the JV with EXMO is a critical step in the company’s process of integrating blockchain and cryptocurrency offerings into the GoverMedia ecosystem.
“Our goal is to satisfy every online need through one single platform,” says Bopp, “We’re confident that the EXMO partnership will provide our community with an incredible user experience, one which will positively impact user activity in our ecosystem.”
Bopp says the JV will add a solid revenue stream for the company. With a daily turnover rate of $40 million, EXMO is one of the top 15 largest cryptocurrency exchanges in the world. The agreement will see the proceeds from GoverMedia users’ currency trades split 50/50, generating an expected daily profit for GoverMedia of $5,350, which the company expects will grow to $35,700 per day by the end of 2018.
GoverMedia aims to be the Alibaba of Russia, serving as an all-encompassing online platform with offerings in e-commerce, social media, multimedia, corporate auctions and database, messaging and crowdfunding. The cryptocurrency revenue stream will join the company’s existing channels in e-commerce fees, advertisement and subscription revenue.
“Our primary goal is to grow our user base and transition Govermedia from a proof of concept to the leading all-encompassing online e-commerce platform in the Russian speaking region,” says Bopp.
Disclsoure: GoverMedia is an annual sponsor of Cantech Letter