Avito.ru, Russia's largest commercial web site announces the completion of another round of financing in which the project has managed to attract a record $75 M from outside investors. The round was headed by the Baring Vostok Provate Equity Fund, and Accel Partners with the participation of Avito.ru existing investors: Northzone and Kinnevik funds.
For the Russian Internet segment it is a record amount of funding from nonpublic companies. According to the Avito.ru CEO and co-founder Jonas Nordlander, the company intends to spend attracted investment on marketing in Russian regions.
Think like we are the American Craigslist. In fact, it is the same board, with the help of which buyers and sellers find each other and sell everything from cars to cell phones. Russia had no such centralized market until now - he said.
Avito.ru service, launched in October 2008, provides an opportunity to place both free and paid ads today. The main profit comes from the sale of premium services to advertisers, as well as providing a platform for business to small businesses. According to TNS Index, about 40% of Runet visit this website.
From the seed round of financing and the second financing round that took place two years ago Avito.ru raised $27 M in total.
As Jonas Nordlander said, used business model is very intensive in terms of money. We used a combination of television and Internet advertising as an effective way of promotion. At the same CEO says that there are no plans for international expansion.
According to official statistics, Avito.ru attracts about 30 M users per month who open a total of 2 B pages. There are about 10 M people who have already bought or sold something on Avito.ru