KupiVIP, the Gilt of Russia, has secured a $38 million investment led by Intel Capital. The company now has now received over $100 million in total investment, positioning it well to take advantage of a Russian e-commerce market that’s expected to grow to $40-60 billion by 2020.
KupiVIP is the largest luxury shopping club in Russia, offering designer labels and brand-name merchandise for significant discounts. The site now has more than eight million registered users, who participate in regular flash sales. (“Kupi” means “sale” in Russian.)
In a statement, general director Oskar Hartmann said that the company was the first in Russia “to launch an online shopping club and were thrilled with our early success.”
Hartmann thinks that this is just the beginning: “We have only just started to exploit the enormous opportunity the Russian consumer market offers to international brands. With this new investment, we are delighted to get the support we need to build a world class e-commerce company.”
The company also runs ShopTime.ru, which offers an e-commerce platform for brands to market their goods in Russia. This is increasingly attractive for international brands, as Russia has become the largest internet market in Europe, and companies such as QuickSilver and Mexx have signed on.
The company plans to use the funds to expand, invest in distribution, and launch new websites.
Other players in this round included Acton Capital Partners, the European Bank of Reconstruction and Development, and existing investors Accel Partners and Balderton Capital.