European investment group, Mangrove Capital Partners, along with Moscow-based ABRT Venture Fund and Arlan Investment Group have invested USD 18 million into online shopping club KupiVIP, operated by Privat Trade Ltd. The funds will assist the KupiVIP to establish itself in the untapped Russian market.
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. 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.