Food retailer Korzinka has secured a €102m ($110m) equity investment in the expansion of its retail operations, furthering the transformation of modern grocery shopping in Uzbekistan.
The capital infusion is supported by co-lead investors Abu Dhabi Uzbek Investment and a consortium of Omani sovereign investment funds headed by the Uzbek-Oman Investment Company.
Go deeper with GlobalData
The funding follows a previous major investment by the European Bank for Reconstruction and Development (EBRD) in 2020.
Zafar Khashimov, founder and chairman of Korzinka, continues to hold the majority stake in the company.
The fresh capital is earmarked for propelling growth across Korzinka’s diverse retail channels, with an emphasis on consolidating its supermarket presence.
The retailer is set to expand its network of Korzinka Mahalla proximity stores and enhance Korzinka Go, its e-commerce platform.
Korzinka is also channelling funds into infrastructure projects, including a new 49,000m² class A distribution centre scheduled to become operational in the second half of 2025.
Korzinka CEO Rud Pedersen stated: “This investment will supercharge our growth strategy and bring the benefits of even greater scale as we accelerate towards our medium-term goal of more than 1,000 stores.
“Since EBRD’s investment in 2020, Korzinka has more than tripled its store footprint and delivered consistent, strong like-for-like sales growth, proving both the growing demand for modern grocery retail and our ability to scale efficiently. With the backing of our new investors, we are well positioned to further drive the growth of modern grocery retail across Uzbekistan, and we look to growing in a similar trajectory over the coming years.”
The EBRD has expressed support for the involvement of new investors in Korzinka’s expansion.
Since acquiring a minority stake, the EBRD has been instrumental in expanding the retailer’s store count and solidifying its position within Uzbekistan.
Korzinka operates more than 150 stores with an omnichannel approach, and employs more than 10,000 individuals.
Korzinka’s forthcoming outlets are projected to cut carbon emissions by between 20% and 30% compared with existing stores.
EBRD private equity co-head Tamas Nagy, who invested in Korzinka in 2020, stated: “We have been proud to support Korzinka since 2020, when we recognised the significant opportunities for the company to grow and the impact its development might have on Uzbekistan. Since then, the company has made remarkable progress on all fronts, including embedding high standards of corporate governance and a climate conscious approach to its store designs.”
