KupiVIP.ru, a Russian online shopping club, has raised USD20m in funding led by venture capital firm Accel Partners.
Accel Partners was joined by existing investors Mangrove Capital Partners, Arlan, Direct Group and business angel, Oliver Jung.
Sonali De Rycker (pictured) from Accel Partners will join KupiVIP.ru’s board as part of Accel’s investment.
KupiVIP.ru is Russia’s largest online flash sales business and had more than one million members joining in 2009. The company sells discounted fashion goods from over 500 active brands on its online property.
KupiVIP.ru launched in 2008 with an initial USD11m investment.
Founder and chief executive Oskar Hartmann says: “This round, which is the largest investment ever into a Russian e-commerce vendor, will allow us to reach our goals for the next period of our company’s growth. Fashion is at the core of our business, and we want to make more brand names available to our members at competitive prices. We are also committed to providing our suppliers with the best service in order to become an essential part of the Russian fashion industry.”
De Rycker adds: “Russia has proven to be a vibrant market for the flash sales model, and we are very excited to partner with KupiVIP, the fast-growing category leader in the region. The management team has accomplished a lot in a short period of time and we look forward to helping them build on their current momentum.”
The company plans to use the proceeds of the funding to further KupiVIP.ru’s growth and invest in logistics and operational infrastructure. In 2010, KupiVIP.ru plans to increase the number of promotional sales events to 2,500, while doubling the number of participating brands to 1,000.
