KupiVIP, Russia’s largest private members shopping club for designer fashion and luxury brands, has landed $55 million in third round funding, something that appears to be a record for the Russian e-commerce sector. Three new investors participated in the funding: Balderton Capital, Bessemer Venture Partners and Russia Partners. The new investors join existing investors including Accel Partners and Mangrove Capital Partners.
The site will use the funding to move into selling consumer goods as continuing with discount offers, mashing up Amazon’s and Vente Privee’s model. A white label platform will act as a way for Western retail brands to launch stores in Russia and the former Soviet states. This will be useful. Western firms have found it very hard to break into the Russian ecommerce market. 11 out of the 15 top internet sites are Russian.