Oktogo.ru, a leading Russian online hotel booking and travel company, officially confirmed yesterday that it has secured a $10 million round of financing. The news was leaked for the first time last month, but Oktogo’s press release has provided details on the operation.
VTB Capital, the investment arm of the Russian state controlled financial group VTB Group, has led the round, but Oktogo’s existing investors Mangrove Capital Partners, Ventech and ABRT – from Luxembourg, France and Russia, respectively – also took part in it. The new investment has brought the total equity capital raised by the startup to $15 million.
Oktogo’s post-money valuation amounted to $30 million, the Russian business daily Vedomosti reported from “persons close to the deal.”
Oktogo also announced that Philip Wolf, Founder and Chairman of PhoCusWright, a global travel market research company, joined the company’s Board as an independent director. “Russia is the last untapped frontier of major international online travel markets. With a top notch team, sound strategy and great results, Oktogo.ru is on track to becoming a leading player of a global caliber,” Wolf believes.
With over 2,500 hotels in Russia and the CIS in its database, Oktogo.ru claims it is “the largest and most relevant hotel offering for both Russian and foreign travelers in the country.”
Also striving for the status of ‘Russia’s Booking.com’ is Ostrovok.ru, which attracted a whopping $13.6 million from Western investors in its Series A round in July 2011, then an undisclosed amount in its latest round in January of this year. Another strong player, Ozon Travel, is the specialized arm of Ozon.ru, a leading Russian e-commerce player.
- RUSSIAN E-COMMERCE REPORT 2012 – The total volume of Russian online retail reached 310 billion rubles, a little more than $10 billion, in 2011, up 25% from the previous year. EWDN’s research study of Russian e-commerce, which includes an analysis of the travel segment, will be available soon. To receive free insights or to order the full version, please contact us at [email protected].
