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Home News Ben Hopkins raises $25 million

0 27 March 2013

Hotel bookingThe Russian online booking service has raised $25 million in series B funding. The round was led by General Catalyst Partners, and attracted funding from Frontier Ventures and Accel Partners. Ex-Expedia CEO Eric Blachford, Silicon Valley investor Shervin Pishevar, global tech investor extraordinaire Yuri Milner and the former head of UBS Russia, Edward Kaufman also backed the company.

The company’s co-founders, Serge Faguet and Kirill Makharinsky, claim that every penny will go straight into the company, and even contributed $2 million of their own money to the round. 

Some funds will go into marketing, as part of the company’s mission to build a true, trustworthy, mainstream consumer brand. It also hopes to further develop its API, which is already used by partners including MegaFon, Tripadvisor, Kayak, Sheremetyevo airport, Aviasales, HotelsCombined and others. Ostrovok also plans to develop their iOS and Android apps, which were launched last year and are now used for 10% of bookings. 

Although Ostrovok does not publish its profits, a representative from the company told Forbes that in the first quarter of 2013 more than 20,000 bookings have been made through the site, compared to 4000 during the same period last year. The average cost of a booking is $400. Users of the site can choose from more than 135,000 hotels in 200 countries around the world, while the company has signed direct agreements with over 4800 hotels in Russia and the CIS in the past 18 months, more than any of its rivals. Another goal for 2013 is to establish direct connections with hotels in Europe, Asia and the US.

More details are available here

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