KupiVIP.ru, Russia’s leading online shopping club, announced today the completion of a $55 million Series C funding deal – a record transaction for a Russian ecommerce business.
Three new investors participated in the operation: Balderton Capital, Bessemer Venture Partners and Russia Partners.
KupiVIP.ru previously raised over $31 million in several rounds of venture capital funding from international and Russian funds Accel Partners, Mangrove Capital, ABRT, Arlan and Direct Group, as well as Western angels investors Oliver Jung and Klaus Hommels.
“Russia is one of the most exciting Internet markets anywhere – currently number two in Europe in terms of users and soon to overtake Germany, with 35% year-on-year ecommerce growth,” commented Dharmash Mistry, partner at Balderton Capital.
Launched in October 2008, KupiVIP hosts up to 20 private online flash sales every day, selling heavily-discounted fashion and accessories from 1200 high-street and luxury brands. Offers include products from renowned international designers such as Dolce & Gabbana and Roberto Cavalli, as well as Russian labels and global sportswear brands. Retail prices are typically reduced by 70% for KupiVIP registered users.
Since its founding, KupiVIP has invested upwards of several millions euros annually in marketing to ensure its leadership. The site claims more than 7 million registered customers across Russia, more than 200,000 of which participate in flash sales every day. Revenues for 2010 grew by 600% compared with the previous year.
KupiVIP is headquartered in Moscow and was founded by 28-year-old Oskar Hartmann, a German entrepreneur born in the Soviet Union. The company has 750 employees, manages its own distribution and logistics network from the Russian capital, and operates throughout the country with approximately one half of sales generated in the Russian provinces.
Source: KupiVIP.ru
