Dutch fund Pluralis takes minority stake in Ukrainska Pravda

The Dutch investment fund Pluralis BV, managed by the Media Development Investment Fund (MDIF), has become a minority shareholder in Ukrainska Pravda (UP Media Plus LLC and UP Media LLC).

Source: Ekonomichna Pravda, citing an agreement signed by Tomáš Fiala and representatives of Pluralis BV

Details: Under the deal, Pluralis will receive a minority share in Ukrainska Pravda. The funds raised during the ongoing war will be invested in launching and expanding the paywall and developing editorial projects. Tomáš Fiala will remain the majority shareholder.

Pluralis BV, registered in the Netherlands and managed by MDIF, was founded by a group of leading European media companies and impact investors. Its mission is to support media that play a vital role in delivering diverse and reliable information.

Major investors in Pluralis include the King Baudouin Foundation, Mediahuis, Erste Stiftung, Tinius Trust, Oak Foundation, GLS Bank, Limelight Foundation and other prominent European media companies and funds that support freedom of speech.

Pluralis's portfolio already includes investments in media companies delivering independent, fact-based journalism, including Polish company Gremi Media SA (publisher of Rzeczpospolita), Slovakian publishing house Petit Press (SME.sk) and Croatian digital publisher Telegram.

"For 25 years, Ukrainska Pravda has played a profound role in Ukraine's public discourse, and we welcome the opportunity to invest in its next chapter.

Since its founding by Georgiy Gongadze, Ukrainska Pravda has been at the forefront of Ukraine's political life, covering every defining moment from the Orange Revolution and Maidan to Russia's invasions and today's wartime period. With its strong digital presence and a brand long associated with courage and integrity, we believe the company is well positioned for growth and will continue to play a pivotal role in Ukraine's future," said Harlan Mandel, CEO of MDIF.

"Exactly 12 years ago, during the final days of the Revolution of Dignity, I decided to contribute to ensuring that Ukraine would no longer balance between democracy and authoritarianism," said Fiala, founder of Dragon Capital and shareholder of Ukrainska Pravda.

"Back then, most media outlets were funded by oligarchs or Russia, and access to objective and reliable information was extremely limited. Over the years, together with colleagues and journalists, we have expanded the space for freedom of speech – the foundation without which Ukraine could not aspire to EU membership. We have actively incorporated international experience, created independent oversight bodies and implemented best practices in independent media.

Since May 2021, when we became the owners of Ukrainska Pravda, the team has grown from 70 to 200 employees and the publication has significantly expanded its product portfolio and readership. Our partnership with Pluralis will support further development of Ukrainska Pravda in line with the highest international standards of journalism, including through the participation of two fund representatives on the supervisory board," Fiala added.

"Pluralis's investment in Ukrainska Pravda is a landmark moment for the entire Ukrainian media industry. It's a clear sign that international, mission-driven capital recognises Ukrainian independent journalism as an institution worth investing in and as a sustainable, scalable business that matters.

A globally respected impact investor choosing to back a Ukrainian publisher also sets a precedent that can unlock a healthier investment culture for independent media in our region. This partnership will help us accelerate what we've been building: stronger reader revenue, better products and technology, and even more capacity for accountability journalism," said Andrii Boborykin, Executive Director of Ukrainska Pravda.

MDIF was founded in 1995 by Serbian journalist Saša Vučinić and The Washington Post correspondent Stuart Auerbach. They sought to create a "media bank" to help journalists in countries where the media are under pressure build sustainable businesses independent of governments, political parties or oligarchs. MDIF invests in independent media worldwide that provide diverse news and promote the exchange of information and ideas people need to build free and prosperous societies.

Ukrainska Pravda is one of Ukraine's oldest and most respected media outlets, founded in 2000 by Georgiy Gongadze and Olena Prytula. The UP media holding company currently comprises Ekonomichna Pravda, European Pravda, Ukrainska Pravda. Zhyttia (Life), Mezha, TabloID and Champion.

Background:

• At the end of February 2024, Champion, one of the oldest sports websites in Ukraine, returned to the UP holding company.
• In January 2024, the technology-focused outlet Mezha.Media joined the Ukrainska Pravda media group.
• In early September 2023, the media group announced the integration of European Pravda.
• On 26 May 2021, Ukrainska Pravda was acquired by Tomáš Fiala.

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