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Second Round Nets Another USD 8 Million for KupiVip

Posted Fri, 27/03/2009 - 01:00

Russia's KupiVip.ru, an online shopping club specializing in discounted fashions and accessories, has raised USD 8 million in financing from investors Mangrove Capital Partners, Arlan, and ABRT Fund. The transaction increases the total investment the three companies have made in KupiVip.ru, adding to the USD 3 million deal put together last year.

KupiVIP (www.kupivip.ru)
KupiVip.ru, operated by Privat Trade Ltd., is taking advantage of the current recession depressed market which has become a boon to online retailers.

KupiVIP is a private shopping club that allows members to buy world famous brand merchandise with up to a 70 percent discount. Each applicant to the club must be referred by an existing member and the merchandise collections are limited to a three day time period.

The additional financing is expected to help the company increase its market share in the discount fashion sector. Since its launch in 2008, the shopping club has exceeded 200,000 registered users.

Western Europe has a highly successful marketplace for these clubs, with sales totaling almost USD 700 million per year.

Mangrove Capital Partners (www.mangrove-vc.com)
Mangrove Capital Partners is a venture capital firm that works int the international market to provide financial backing to internet and software businesses. With the strategy of investing and advising companies in their early and growing stages of development.

Mangrove Capital is most known for its initial investment into Skype and was named to Forbes' Midas list for both 2007 and 2008.

ABRT Venture Fund (www.abrtfund.com)
Focusing on early stage development for internet and software companies, ABRT Venture Fund focuses on the Russian and Central and Eastern European markets. Specializes in research and development of product lines for growing companies, ABRT advises the firms in its portfolio on establishing a successful product line.

The Moscow-based venture capital fund was established by the founders of Aelita Software, sold in 2004 for USD 115 million to a U.S. firm.