Bessemer Venture Partners, Balderton Capital and Russia Partners (Siguler Guff‘s Russian investment arm) have acquired a significant stake in the leading Russian online shopping club KupiVIP.ru. The private equity firms invested $55 million in Series C in KupiVIP. The existing investors Accel and Mangrove Capital also particiated in the round that included the acquisition of both new and existiing shares. The new funds will be invested into KupiVIP‘s logistics and marketing as well as in developing its private trade ecommerce service platform for retail brands.
Launched in October 2008, KupiVIP.ru has 7 million members. This amount has more than quadripled from 1.3 milllion in January 2010.
KupiVIP.ru, which was founded by CEO Oskar Hartmann, offers flash sales of branded goods and clothes with a signficant discount to regsitered club members. Moscow-headquartered KupiVIP.ru generates half of its sales from Russian regions. KupiVIP.ru revenue run-rate is about $100 million per year.
KupiVIP.ru previously raised over $31 million in several rounds of venture capital funding from Accel Partners, Mangrove Capital, ABRT and Arlan as well as several European ‘angel’ investors Oliver Jung and Klaus Hommels.
The leading European early-stage venture capital investor Mangrove Capital Partners also invested in German shopping club brands4friends that was acquired by eBay in December 2010.
The $55 million investment of Bessemer Venture Partners, Balderton Capital and Russia Partners into KupiVIP.ru is the largest transaction for a Russian ecommerce business.
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