A medical school graduate, Radu Apostolescu (now 38 years old) figured out from the 3rd year of study that he wasn’t going to go all the way and become a doctor. Instead, he began to pay close attention to an entirely different field of interest – Internet. By 1998 he was setting up different websites, and soon what he’d considered a playful experiment turned into a rather earnest business. During this time he launched MyJob.ro, a successful employment website he operated until 2004, when he sold it to Netbridge.
Three years before, when he was just 25, Apostolescu was persuaded by a friend, Bogdan Vlad (29), to try their luck at launching an online store. They hit the road with an initial outlay of USD 5,000. “When we began working at the new platform, it was spring. When we finally managed to launch it online it was December, and we were rubbing our hands with glee at the prospect of the holiday season. I can’t quite remember eMag’s exact launching date, but what I do remember is the day the first order was placed: December 17. A red letter day. As far as I recall, there weren’t too many orders till the end of the year, but that didn’t matter anymore. We were up and running.”
Apostolescu had been in charge with designing the logo, largely writing the interface code, and also with all brand development and marketing activities. The newly founded company was based in a rented three-bedroom flat in Vitan neighbourhood, while all orders were delivered with an old Dacia pick-up car. One year later, Dan Teodosescu joind the eMag team.
…And then the crisis came
For seven years, eMAG expanded at an impressive rate, all the while relying on its own resources. By 2007, the company’s turnover was exceeding 79 million euros. For the following year, the board was hopingfor a two-fold increase in total sales. They were bitterly wrong, as 2008 marked the beginning of the global financial crisis. Thus, for 2009, Radu Apostolescu had to operate a 40 million euro downward revision. These were the toughest times in the company’s short history. After a series of talks with local and foreign potential investors, eMag was acquired by Asesoft Distribution, one of the IT&C retail market leaders, owned by Iulian Stanciu and Sebastian Ghiţă. Although the actual price was never made public, the deal was evaluated at 10 million euros.
… And then the South Africans came
Two years later, in 2011, Bogdan Vlad and Dan Teodosescu sold all their remaining shares (a total stake of about 30%) to the main stakeholder, Asesoft Distribution. Thus, Radu Apostolescu became the only founder still involved in the company, with a remainder of 16,3% of the shares. He kept on managing all marketing activities, and soon enough was appointed vice president and development manager. Then, in the summer of 2012, the South African group Naspers purchased a 70% stake, for about USD 80 million – Sebastian Ghiţă’s 40,3% stake and half of Iulian Stanciu’s and Radu Apostolescu’s stakes (20% and 8%, respectively). Hence, eMAG’s new shareholder structure was Naspers – 70%, Iulian Stanciu – 21,6% and Radu Apostolescu – 8,4%.
A new beginning
A month ago, after 13 years of eMAG, Radu Apostolescu decided to call a halt. He gave up on his 8,4% stake for about USD 9,6 million (relative to the 2012 transaction price). “I would’t say it was a throughly-planned decision, but I think it was a good one. At this point, the company needs a different type of key-people”, Apostolescu wrote on his blog. From a consumer electronics and household appliances online store, eMag evolved into an online mall, merchendising everything from toys and books to car parts, DIY articles or make-up products. Now, Radu Apostolescu aims to assume a “business angel” part, to support different start-ups with counselling and money. He prompts all wanna-be entrepreneurs: “You may need a piece of advice, an idea or some sum of money. 13 years ago, I was in your place, so don’t be shy and approach me”,
“eMAG’s on a roll these days, ready to take the trully big step and become a multinational company. My mission here is over.”
