KupiVip Holding, the owner of the largest online fashion shopping club in Russia, has raised $38 million in a Series D funding deal led by Intel Capital, with new investment from Acton Capital Partners and the European Bank of Reconstruction and Development.
Historic investors Accel Partners and Balderton Capital also participated in the round. KupiVip’s valuation has not been disclosed.
In addition to the online shopping club KupiVip.ru, the holding also includes: KupiLuxe.ru, a shopping club focusing on the premium and luxury segments; KupiVip E-Commerce services, which provide third-party players with fulfillment services; and Shoptime.ru, a fashion items and accessories retailer that launched earlier this year.
The $38 million investment will be used to develop the order fulfillment process, with the opening of a new 20,000 sq. meter warehouse, and also to support business growth with the launch of new websites.
Since its foundation, KupiVip has attracted total investments of over $124 million, including the present round, from leading Russian and foreign investors. In the spring of 2011, the company completed a record $55 million Series C funding deal.
In an exchange earlier this week with Reuters, KupiVip’s CEO Oskar Hartmann confirmed he has plans to hold an IPO in New York “within two years.” “We need to grow to reach the size [of business] that allows us to do a round of $120 million or more,” he said.
Launched in October 2008, KupiVip has successfully brought to Russia the concept of online flash sales, which such players as Vente-Privee.com and Gilt.com had made popular in the West years before. The site sells name brand fashion at deep discounts, up to 70% off, targeting middle class Russians, both men and women, in “every region, every city.” Offers include products from such designers as Dolce & Gabbana and Roberto Cavalli, global sportswear brands as well as Russian labels.
KupiVip’s revenues for 2011 have not been disclosed, but a reliable source close to the company told East-West Digital News they reached $160 million.
Hartmann has set himself the goal of generating $1 billion in sales annually within the next four years – a figure that drives KupiVip’s ambition to contend for leadership on the Russian e-commerce scene.
- 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 contains a review of the e-commerce related investment deals that have taken place in Russia over the last two years, will be available soon. To receive free insights or to order the full version, please contact us at [email protected].
