In Russia’s largest e-commerce transaction of 2010, online classified advertiser Avito.ru has secured USD 26 million in new funding from Sweden’s Northzone Ventures and Investment AB Kinnevik. Kinnevik contributed most of the funding at USD 21 million.
With the additional investment, Avito.ru is better positioned to compete with Slando.ru, IRR.ru, and OLX.ru, it’s main rivals in the Russian classifieds business. The Avito.ru deal is the latest for Kinnevik, who recently added Sapato.ru to its growing list of Russian e-commerce investments.
Avito.ru is one of Russia’s largest online classified sites by volume, with 7 million new visitors and 1 million new ads every month. The company’s business model provides for revenue from selling advertisements on the site, and growth has been strong thus far. The site has been up and running since October 2007.
Northzone Ventures (www.northzone.com)
Since 1994, Northzone Ventures has raised and invested five funds primarily in the Nordic region. Total assets currently under management are approximately €355 million and are spread throughout the IT, communications, consumer applications, and clean technology sectors.
Some of the more well-known companies Northzone has been involved with include NextGenTel, Xcerion, StepStone, and Norstel.
Investment AB Kinnevik (www.kinnevik.se)
Investment AB Kinnevik is a Swedish investment company with three business divisions: Major Listed Holdings, Major Unlisted Holdings, and New Ventures.
The company was first established in 1936 with a mind to increase share value through a plan of asset growth.
The firm has produced an average annual return of 19% for its investors for the last thirty years.