Earlier this month Babadu.ru, a children’s goods online retailer, secured a $2.9 million investment from the Internet Initiatives Development Fund (FRII in Russian).
A $200 million seed stage investment fund launched last year, FRII usually invests smaller amounts at earlier stages. However, the fund has been eyeing the online children’s goods market for a long time – one of the most dynamic areas of the Russian e-commerce market.
In 2013, this segment amounted to 24 billion rubles (approximately $750 million), up 43% from the previous year, according to InSales data cited in EWDN’s latest industry report.
“We first became interested in Babadu because of its people – a great team made up of high-level professionals. Furthermore, Babadu has demonstrated fast growth in sales and good internal finance,” Rusbase.com quoted FRII’s Investment Director Maxim Shteigervald as saying.
The site claims it has “more than tripled in size” and made its brand “international” since it received a first investment from Target Ventures one year ago.
In addition to its classic retail activity, Babadu.ru has developed a subscription-based offer for products, games, and educational materials as well as a sizeable editorial content base. The site was launched in 2009 in Saint Petersburg but now operates nationwide.
Among Babadu’s competitors are Esky.ru, which raised $6 million from Ru-Net in 2013. Ru-Net’s stake was bought earlier this year by South African group Naspers.
- EWDN has published an in-depth research on the Russian online retail industry based on exchanges with more than 100 market players and experts. To receive free insights, please contact us at [email protected].
