Leading Russian luxury e-commerce company seeks New York IPO
Russian online retailer KupiVIP has announced its intention to study an initial public offering in New York within in the next two years, aimed to raise at least US$ 120 million. “We have already made quite good progress and it (an IPO) is likely to take place within two years. We need to grow to reach the size (of business) that allows us to do a round (of funding) of 120 plus (million dollars),” KupiVIP’s Oskar Hartmann told reporters earlier this week.
KupiVIP.ru is an online shopping club in Russia, operated by Privat Trade Ltd. The site organises designer brand online sales in fashion and fashion accessories with discounts of up to 70% off boutique prices. KupiVIP has hit 200,000 registered users since launching nearly two years ago.
Launched in October 2008, KupiVIP has attracted $86 million of funding to date from investors seeking exposure to one of the fastest-growing electronic commerce markets. It raised $55 million from funds Russia Partners, Balderton Capital, and Bessemer Venture Partners in April last year. The deal followed a $20 million funding led by Accel Partners and Mangrove Capital Partners in January 2010.
The company aims to reach annual turnover of $1 billion within four years and is investing in warehouse infrastructure, Hartmann said.
As reported by Reuters, global investors are showing a growing appetite for Russian internet firms as they seek to tap into rising consumer spending and the fast-growing use of broadband in Russia, now Europe’s biggest internet market.
One of the last examples of this renewed interest in Russian ventures is Russia’s leading online retailerOzon.ru, which secured funding of $100 million last year, (from a consortium including Japanese online retailer Rakuten) marking the biggest private investment to date in Russia’s e-commerce market.
from Reuters and FashionUnited.com