Mangrove Capital Invests In Russian Online Shopping Club

Files under: News, Tech, Web 2.0
Posted by: Quintura @ 11:58 [27. 10. 08]

When it comes to online shopping in Russia, the venture capital investors are looking for proven business models and projects that can generate revenues from the very beginning. The largest Russian online shop Ozon.ru, which often called ‘Russian Amazon’, has raised $18 million from Index Ventures and the others. I recently suggested that for an Internet venture in Russia to be successful is important to operate the proven model and attract investors with successful track record.

One such online venture is launching on the Russian online shopping market with a fresh funding from Mangrove Capital Partners and ABRT Fund. The funds should have made a multi-million dollar investment in KupiVIP.ru. The company is also backed by Arlan, a Russian industrial investment group.The online shopping club KupiVIP.ru , which is operated by Privat Trade Ltd, will organize designer brand online sales in fashion and fashion accessories. By employing direct partnerships with designer brands, KupiVIP.ru will offer discounts up to 70% off boutique prices. To join the online club, a user has to be referred by existing club member.

The company should have replicated the business model of Vente-privee.com in France, Germany and other European countries. Founded in 2001, Vente-privee.com has 5 million members and sales of almost EUR 0.5 billion in 2007.

Mangrove Capital and ABRT are investors in Quintura. The funds also invested in Russian in-game advertising company EnterMedia.

Tags: abrt, KupiVIP, mangrove capital, Russian online shopping, Russian venture capital