Naspers affiliate Prosus has sold Avito, the Russian classifieds giant, for 151 billion rubles ($2.46 billion at the current exchange), to Kismet Capital Group. The transaction, which was announced in mid-October, was closed earlier this week, reported news agencies.
A consortium of banks, headed by Russian Agricultural Bank, organized financing for the transaction, Kismet said.
Avito was valued at $3.85 billion in 2019, when the South African group completed the acquisition of the company, and estimated by analysts at up to $7 billion (500-600 billion rubles) just before Russia invaded Ukraine in February 2022.
The war forced Naspers to change the configuration of Avito, which became a fully autonomous entity in March 2022 as strengthened international sanctions hit Russia. In May, Prosus announced its intention to leave Russia and sell Avito. Russian oligarch Vladimir Potanin and Kremlin-controlled VK Company were seen as likely acquirers.
Launched in 2007 by Swedish entrepreneurs Filip Engelbert and Jonas Nordlander, Avito quickly asserted its leadership in Russia. The company was backed in its early days by a bevy of international investors, including Vostok Nafta Investment (now rebranded to Vostok New Ventures) and Kinnevik.
According to Similarweb, Avito.ru generated 341.1 million visits in Q3 2022. The platform stood as the world’s 74th most visited website in September 2022 and a global leader in the classifieds category.
Kismet was founded in 2016 by Russian entrepreneur Ivan Tavrin, who successfully developed media and telco businesses in the 2000s and 2010s.
