Direct Group

Russian online shopping club scores $20 million in funding

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Private online shopping clubs are springing up like mushrooms all around the world in light of the successes companies like Vente Privée has been seeing, and venture capital firms are increasingly starting to invest in companies who are bringing the concept to specific niches or introducing the private online sales model to interesting geographical markets.

In the latter category falls Russian, which has just raised a monster round of $20 million in venture funding led by Accel Partners and joined by prior investors Mangrove Capital Partners, ARLAN, Direct Group and angel Oliver Jung.

In March 2009, had raised $8 million on top of its Series A round of $3 million, so this new capital injection brings the amount of investement to a healthy $31 million. sells discounted fashion goods from over 500 active brands, an offer that has so far attracted 1 million members to the online club according to the press release. Founder and CEO of, Oskar Hartmann, said the round represents the largest investment ever into a Russian e-commerce vendor.

The company plans to use the funds to invest in logistics and operational infrastructure, as it strives to plan 2,500 flash sales events and double the number of participating brands to 1,000 in 2010.

As part of Accel’s investment, the VC firm’s Sonali De Rycker will join’s board.

(Via Quintura)

  • Konstantin

    OMG great news for Russia! It seems that people are finally starting to realize the power of the web and actually raise money! Way to go kupivip!

    • Xbox mania

      There are smart ppl everyone! Russia has more of them that’s gonna come up..

      Rem spammers are more from Russia too!

    • BECKS

      If you want to register vente privee feel free to use my email as referrer or Godfather´s email:

  • Jon

    Kupivip has been one with the potential! Read more

  • Elena

    Lot’s of raised money doesn’t mean lot’s of earned money.
    Kupivip average number of daily orders is 300, while (Russian has 50-100 orders per day with total of $2K (not $31M) investments.

    Guess, who’s more effective :)

    • Alex Tayra

      I’m from Russia and never hear anything about cheap-and-daily, but kupivip is really famous in Russian e-commerce scene. So your post looks like advertisment.

      • Oleg

        Alex, the only reason kupivip is famous is because they spent 80% on marketing & pr. If they still do only 300 orders a day, kupivip will become epic fail (in this case they can’t live without investments).

  • Manuel

    Having 31M, this should not be hapening.

    • PK

      Yup – site looks somewhat amateurish for such big company. But still Google is champion of amateur (logo) design.

  • led display

    That’s a good news …!

  • isotonic

    For $20 mil they could come up with something better than Photoshop 2.0 lens flare and bad kerning.

  • Internet Timer

    I think that $20.000.000 nowadays is still a bit of cash, for a company catering for the russian speaking public.

  • dutch

    Russian website with a German ip?

  • astroverse

    Ehm, my wife makes orders at kupivip on a weekly basis… Darn luxury brands’ discounts…

  • Jeremy

    Does anyone know of the same sort of sites in China?

  • New View Media

    Just wait until the Russian mob gets into the business and we’ll see how foreign investment into this company turns out. Have had a few friends build successful companies in Russia only to be forced out of the market by the local government/ gangsters. No joke, foreigners have a huge uphill battle taking on the local Russians and haven’t heard of any succeeding.

  • http://029583321 ludmila_cdrean_jucov


  • http://029583321 ludmila_cdrean_jucov

  • netadvicer

    the next logical step for them to develop a fashion social network

  • paul@online shopping

    Reading your blog has really opened my eyes to alot. Many thanks.

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