Nova Post (Nova Poshta) is Ukraine's leading private postal and courier company, and since it was established in 2001 by entrepreneurs Vyacheslav Klymov and Volodymyr Popereshnyuk it has grown by leaps and bounds.

Lifted by the burgeoning e-commerce and home delivery business, logistics is the backbone of the new economy, and that niche has been filled by Nova Post. The company has continued to work since the start of the war bring essentials and supplies to the embattled population at some considerable risk to life and limb. Indeed, on at least one occasion its warehouses have been targeted by Russian missiles leading to the deaths of several members of its staff.

But despite the war, the business continues to grow, and it has rolled out operations in half a dozen EU countries in a rare example of a domestically growing Ukrainian company that is finding success in the wide EU market.

bne IntelliNews interviewed Oleksandr Konstantynov, the CEO of Nova Post’s newly opened business in Germany.

Q. The company is now expanding internationally, but can summarize how the company’s core business in Ukraine has been affected by the war?

Over 23 years, Nova Post has built a logistics market in Ukraine that did not exist before. We have created the most extensive network – with over 37,000 service points, and our network of parcel lockers is the second largest in Europe.

During the war, as well as in peacetime, our role remains the same – to provide fast and reliable delivery for people and businesses. Of course, the full-scale invasion has affected our operations, but Nova Post has not stopped working for a single day. We have learnt to work despite several days of curfews and checkpoints. We developed new routes to replace those destroyed by the enemy and became even faster. Before the war, we used to deliver parcels in 26 hours, and now we deliver them in 24 hours between the most remote cities of the country.

Another challenge was the destruction of the company's infrastructure by the enemy. More than ten of our sorting hubs were destroyed, and although we have already restored six of them, some are beyond repair. Due to the constant attacks on the power grid, we faced power outages. To ensure uninterrupted operation of our branches, we have equipped them with generators and Starlinks, and we are installing gas-piston cogeneration units and solar power plants at our sorting hubs.

The company has begun investing in electricity generation to secure its energy needs, including renewable energy sources by installing solar panels at sorting hubs and integrating electric vehicles into its fleet.

The war has also led to a shortage of staff, so we are actively recruiting students and opening vacancies for both women and men without work experience. In addition, we have special adaptation programmes for veterans.

Despite these challenges, Nova Post continues to grow. We continue to develop our own network and today we operate in more than 10,000 settlements across Ukraine, including frontline cities, and deliver to places where other postal operators do not deliver. Every day, Nova Post delivers 1.5mn items.

Q. When did you start opening abroad?

The first Nova Post branch outside Ukraine was opened in Moldova in 2014. Today, we rank among the top three postal operators in the country, with a network of 26 branches, 260 own parcel lockers and 74 partner pickup points across the country.

The beginning of the full-scale invasion in 2022 was a new impetus for international development. Many Ukrainians, fleeing for their lives, moved to Europe with a minimum of belongings. This created a need for a convenient and reliable way to deliver parcels from home. We followed our customers to Europe and opened the first Nova Post branch in the Polish capital, Warsaw, in October 2022. This was the beginning of the active development of the network in European countries.

Five months after the opening of the first branch in Poland, we entered the Lithuanian market by opening a branch in Vilnius and later in Kaunas.

The Czech Republic was the next country where Nova Post started operating. The first branch in Prague was opened in June 2023. In the same month, we entered the Romanian market, and a month later, in July, we started operating in Germany. This was an important step in creating a strong logistics system that connects Ukraine with Europe.

Today, Nova Post operates in 16 European countries: Moldova, Poland, Germany, the Czech Republic, Lithuania, Romania, Latvia, Estonia, Slovakia, Hungary, Italy, Spain, the United Kingdom, France, Austria and the Netherlands.

Q. What was the rationale? Simply grow in new markets?  

When we started to scale up in the European market, our primary goal was to connect those who were separated by borders. For example, Germany has taken in and protected the largest number of Ukrainian refugees, with the latest figures showing more than 1,200,000 people. Initially, we focused on Ukrainians, who already knew who we were, what our advantages were, and how quickly we could deliver parcels.

At the same time, we see great potential for demand for our services not only among Ukrainians, but also among local businesses and residents of Germany. That is why we are introducing new services and services that are interesting and useful for them: we are developing formats that are more familiar to local consumers – parcel pick-up points and courier delivery, delivery between European countries, one-day delivery, courier pick-up, fulfilment, etc. Today in Europe, Nova Post already has its own courier delivery, ten sorting centres, more than ten logistics partners and 87,000 service points, of which 123 are its own branches.

In the future, we see Nova Post as a reliable partner in all European markets, offering convenient and fast services tailored to the needs of customers. Our ambition is to become the delivery leader in Europe and the best choice of delivery between Ukraine and the world.

Q. How many international deliveries have you made before?

Before the war, we delivered about 9mn international parcels per year, in 2022 we delivered 6.5mn international parcels; in 2023, 10.2mn international parcels; last year, 19mn international parcels, which is 86% more than in 2023.

Even before the war, we planned to enter the EU market and were preparing for it, but the war just accelerated everything. To develop international delivery and diversify our business, we founded Nova Global back in 2015. This is a company that offers customers logistics solutions for delivery around the world. Nova Global is focused on the global e-commerce market and cooperates with international online retailers from all over the world, such as Amazon, eBay, etsy and others. This allows our customers to easily and quickly place orders in international online stores, send an international parcel from any Nova Post branch to one of the 213 countries to which we deliver, or even to other continents.

Local deliveries are primarily courier services, completed within the same day within a city. Or it can be delivered across the country – between branches, or to parcel pickup points (PUDOs) and parcel lockers. This is also a simple logistics route that we can easily handle in 24 hours.

Long-distance deliveries between countries, require more complex logistics, optimisation of linehalls (routes) and sometimes customs procedures. The distance between countries also affects delivery times. Nevertheless, we are constantly improving our processes to maintain the speed and quality of service.

For example, we are now offering next-day delivery in the Berlin-Warsaw direction, which is a significant achievement in providing operational logistics between European countries.

Q. What services does Nova Post provide to private and business customers?

Nova Post offers a wide range of services for both private and business customers. In particular, for private clients, we provide fast and convenient delivery of parcels, documents, and cargo across the country, between European countries and to Ukraine – to branches, parcel lockers, pickup points, and directly to the address.

The delivery service between European countries is quite popular. Interestingly, it is often used by tourists, as it is more comfortable and cheaper to send suitcases to a holiday destination via Nova Post than to buy a place for luggage on the plane and go through a lengthy check-in procedure at the airport.  

For business customers, Nova Post provides comprehensive logistics solutions, including not only fast delivery, but also a personal manager to select the best delivery options and provide advice. We also offer packaging services and support for customs brokerage procedures. To simplify logistics, we offer fulfilment services, which are already available in Poland and Spain. We plan to introduce these services in other countries in the future. In 2024 alone, Nova Post entered the markets of six countries: Italy (Rome), the UK, Spain, France, Austria and the Netherlands.

Q. How do the company's revenues compare in Ukraine and abroad?

It would be inappropriate to compare profitability in Ukraine and abroad, as the Ukrainian market is our parent market, and we have been successfully operating there for 23 years. In Ukraine, we have built the most extensive customer service network with more than 37,000 service points, and we have created the largest logistics infrastructure in the country – 126 sorting hubs in every region and district, which allows us to provide fast delivery throughout Ukraine.

During this time, we have created efficient business models that not only meet the needs of our customers, but also provide stable revenues, consolidating our leadership in the industry. Moreover, Nova Post is one of the top 20 largest taxpayers in Ukraine and is among the largest employers, providing jobs for 35,000 employees.

Instead, we consider the European market as a startup. This is driven not only by the difference in market scales but also by the need to adapt to local conditions, choosing flexible working models. At the same time, we are not simply following a pre-set plan; we are constantly adapting it, adding new elements. After all, we study the behaviour of our customers, learn about their needs, and do everything to ensure they have a convenient experience using our delivery service.

In most countries, we have not yet passed the break-even point, but in Moldova, in 2024, we achieved a positive operating result for the first time, meaning that our revenues covered the cost of providing services.

Q. Germany is the biggest consumer market in Europe. What is the potential of the market for Nova Post?

The company entered the German market in July 2023 – the fifth EU country Nova Post entered. We have followed our customers to Europe.

Overall, Germany is the number one economy in Europe. The freight transportation and logistics market here is valued at €190bn, while the domestic courier and express delivery market is worth €12bn. Of course, the industry is saturated with players, represented by both large international corporations and local companies. At the same time, we are convinced that our company has something to offer local consumers.

One of our goals is to open Ukraine to German businesses as a new large market with 30mn active consumers. For example, the volume of orders placed by Ukrainians through our company in international online stores increased by 55% in 2023.

Today, Nova Post has branches in 17 German cities, such as Berlin, Hamburg, Munich, Frankfurt am Main, Cologne, Düsseldorf, Dortmund, Bremen, Dresden, Büttelborn, Essen, Wuppertal, Hanover, Magdeburg, Mannheim and Leipzig. Besides, courier delivery is available throughout the country, and all our customers can use 7,700 partner parcel pickup points.

Q. How has the business been affected by the German economic recession?

Nova Post is developing in Germany according to plan and thanks to a comprehensive approach. We combine customer orientation with effective partnerships and offer services that most competitors do not provide. This allows us to grow and attract new clients even amid global economic slowdown, the German economic recession, and current geopolitical challenges.

Our many years of experience in Ukraine have taught us how to deal effectively with crises. We have survived several revolutions, the occupation of Crimea and Donbas, a pandemic, a financial crisis, and a full-scale invasion. We have emerged from each situation even stronger, as we view each challenge as a growth point. Today we are successfully using this experience to adapt to new conditions and develop in European markets.

We believe in partnership. We work in partnership with DPD and DHL, who support us and help us to grow in Germany. They support us in delivering parcels to the most remote locations in the country and also provide us with the opportunity to pick up parcels for further delivery. This cooperation ensures a high level of service for our customers and creates additional volumes of shipments, which contributes to the development of logistics and delivery in Germany.

Q. How much have you invested/are you planning to invest in Germany?

Between January and November 2024, we have already invested €291,524 in Germany. In terms of capital expenditure (capex), the amount is €821,495 excluding VAT. These are the investments we have made since the opening of our business in Germany. They are aimed at developing our infrastructure and improving our customer service.

We have positive expectations for our business in Germany. Our main goal is to become a leading player in the delivery between Ukraine and Germany and to establish ourselves as a prominent player in the international logistics market. We want Nova Post to be associated with reliability, speed and convenience of delivery for the people of Germany.

In addition to the development of domestic services, Nova Post is focusing on expanding its international business ‘Germany to the World’, which opens up new prospects for the development of international logistics. We see this as an important step for our further growth and strengthening of our market position.