Ru-Net, a Russian tech fund with headquarters in Moscow and New York, has shelled out $6 million to buy a 25% stake in Esky.ru, an online retailer of children’s goods, the Russian business daily Kommersant reported earlier this week, citing two unnamed sources “with knowledge of the deal.”
One of the sources told Kommersant that the transaction had actually been completed six months ago, though it had not been made public. The startup has not responded to EWDN’s request for comments.
The money has reportedly fueled Esky’s expansion into Russia’s regions. In an exchange with Kommersant, Andrei Chechin of Ozon.ru, a leading Russian e-commerce operator, commended Esky’s regional drive as a “logical strategy,” explaining that Russia’s regions now generate “half of national sales revenue” and appear set to overtake Moscow.
Esky.ru operates in one of the most dynamic areas of Russia’s e-commerce market. The children’s goods segment is growing at a CAGR of 30-35% and is estimated to account for approximately 7% of Russia’s entire e-commerce sector.
Set up four years ago by CEO Alexander Piskunov and his partners, the e-retailer passed breakeven the next year and is currently said to offer an assortment of more than 25,000 items. In 2011 it had sales of just over $7 million, according to SPARK, a Russian corporate market analyst. Last year its sales leapfrogged to about $30 million, one of Kommersant’s sources said.
Launched by Leonid Boguslavsky in 1999 to focus on IT and other high tech, Ru-Net has evolved over the years into a sizable company managing a diverse international portfolio of more than 40 investments across the U.S., Europe, Russia, and southeast Asia. It now holds stakes in video Ivi.ru, contextual advertising agency IConText, Ozon.ru, discounter Biglion, fashion retailer Trends Brands and various others.
- RUSSIAN E-COMMERCE REPORT – The total volume of Russian online retail reached approximately $13 billion in 2012, up 25% from the previous year. EWDN has published an in-depth research on Russian e-commerce, based on interview with more than 80 market players. To receive free insights or to order the full version, please contact us at[email protected]
