Ostrovok Raises New $12M Series C Round To Expand Outside Russia

Ostrovok.ru, the Russian accommodation booking startup, has announced a $12 million financing round investment led by Vaizra Capital Russia, a fund backed by Vyacheslav Mirilashvili and Lev Leviev, co-founders of Vkontakte, Russia’s largest social network. The cash will be used to expand the service more internationally and develop the product. Previously, it had raised $38.6 million.

Last month Kirill Makharinsky, the co-founder of Ostrovok, departed the company. His co-founder Serge Faguet remains on board as CEO.

Ostrovok counts Yuri Milner, Accel Partners, Esther Dyson and Atomico Ventures amongst its investors. It aims to become a combined version of Hotels.com / Priceline / Booking.com, expanding from Russia to surrounding states.

It recently signed global distribution agreements with Marriot, Accor, Rezidor and Fairmont, giving it an edge on more affordable prices for Russian customers travelling abroad.

It also launched an iPad app this month to add to its iPhone and android apps, which have around 220 000 users.

Ostrovok has managed to garner awards from National Geographic Travel and E-Travel Navigator, among others.

As part of the financing, Fritz Demopoulos, Ostrovok’s early investor and co-founder of Qunar, China’s leading hotel- and air-booking service, has joined Ostrovok’s board of directors.