KupiVip Holding, the owner of the largest online fashion shopping club in Russia, has raised $12 million from Warsaw-headquartered MCI Management, a multi-stage technology private equity group operating in Central and Eastern Europe.
The investment will be used for various purposes, KupiVip stated, from “further development of order fulfillment capacities to business growth, with the launch of new websites.”
Since its foundation, the KupiVip holding has attracted total investments of nearly $140 million, including the present round, from leading Russian and foreign investors. In June of this year, the company completed a $38 million Series D funding deal.
Launched in October 2008, KupiVip.ru 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. KupiVip.ru’s revenues for 2011 have not been disclosed, but East-West Digital News learned from a reliable source close to the company that they reached $160 million.
In addition to the KupiVip.ru website, 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 company’s CEO Oskar 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.
Earlier this year, Hartmann confirmed he had plans to hold an IPO in New York “within two years.”
Established in 1999, MCI presents itself as one of the most dynamic private equity groups in the CEE Region. Its seven funds cover a diversified range of investment operations from seed to growth and expansion in technology, real estate and infrastructure.
The group claims that it has so far closed over 50 investment projects with over 20 full exits and annual internal rates of return approaching 20%.
Sources: KupiVip.ru, MCI
- 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].
