Avito.ru, the biggest site for online classified ads in Russia, has closed a new $75 million round of funding, the startup announced today.
It’s easy to write off classifieds as something people used to pay for before the advent of Craigslist, but in Russia it’s still big business.
Avito’s service helps both individuals and small- and medium-sized businesses (traditional retailers, real estate agencies, car dealerships, etc.) generate additional revenue at very little cost. The startup doesn’t charge users to place an ad, but it does charge for optional features, like advanced search functionality, highlighting ads, etc. — not unlike item listings on eBay.
Avito is seeing nearly 30 million unique users per month and about six million new items added per month. The startup estimates that, by the end of 2012, the cumulative value of all items traded on its site will top 3 percent of the Russian GDP.
Avito said it will use the new capital to further its expansion of the company as well as hire additional employees.
Founded in 2008, the Moscow-based startup previously raised a $26 million round back in 2010. Avito has raised $101 million to date from Accel Partners, Baring Vostok Private Equity, Kinnevik, and Northzone.