Earlier this week the global German media company Hubert Burba Media announced their investment in Russian educational e-commerce site Bimbasket. Burda received a “strategic share” in the startup in exchange for a cash injection combined with media campaigns using the media-for-equity model. Neither the amount of the deal nor the startup’s valuation have been disclosed.
Launched in early 2013, Bimbasket enables parents to subscribe to a recurring product offer – from toys to books to musical instruments – designed to instruct and entertain their infants and young children.
Prof. Mikhail Lazarev of the Russian Academy of Pedagogical and Social Sciences is one of the founders of the site, which combines existing US models with his own educational method.
In February 2013, Bimbasket secured a $500,000 seed-stage investment from International investor Black Ocean.
Bimbasket claims to have delivered in its first year “several thousand products on subscription to more than 100 towns and cities in Russia.” The company’s plans for the coming 18 months include “the development of new products for children aged between 3 and 6, an expansion of the market to include CIS countries and also the automation and optimisation of internal processes,” according to the press release.
“Bimbasket fits in well with our portfolio of services and media for parents,” stated Christian Graggaber, Investment Director at Hubert Burda Media in Russia “Along with fashion, needlework, food, cars and homes, Hubert Burda Media pays particular attention to parents – for them the company issues a printed publication, puts on events and has launched online portals, such as Moy.rebenok.ru.”
“We believe in the Russian market and plan to increase our portfolio with additional investments,” Graggaber added.
Hubert Burda Media works in 26 countries, publishing more than 300 magazines. According to company reports, half of the media company’s turnover is related to the digital business.
Burda’s publishing activities in Russia began in 1995. Today the company issues more than 80 periodicals, attracting more than 35 million readers, according to TNS Gallup Media.
In the spring of this year, the company began to consider Russian digital projects for investment. The Burda Digital Russia fund is prepared to invest between $500,000 and $3 million in projects in the fields of fashion and beauty, house and lifestyle, family and children, cookery, and car industry.
