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Online retailer Wikimart seeks $50m

0 1 April 2014

Russian online-hypermarket Wikimart wants to raise a fourth investment round. It aims to obtain at least $40 million and to conclude the round some time between summer 2014 and spring 2015. However, the company’s co-founder Maxim Faldin acknowledges that raising funds won’t be easy - he commented that “the VC market has become much more difficult after Crimea, leading to devaluation”. 

Faldin reckons that the company is worth approximately one year’s annual turnover - which was $150 million in 2013, and is forecast to be $260 million in 2014. However, the weak rouble and the political situation could bring down the total valuation. 

So far the company has raised around $50 million in three investment rounds, the last of which was completed in 2011. Co-founders Faldin and Kamil Kurmakaev currently own 20% of the company, while 50% belongs to Tiger Global Management. The remaining shares are held by an undisclosed Russian investor. 

According to Faldin, Wikimart needs to funding in order to consolidate -

“Russian e-commerce has now reached a new level of development - the period of consolidation has begun. Therefore investment will be spent not only on maintaining growth, but on starting to consolidate our position.”

Wikimart is not the only major Russian e-commerce company seeking funding. The founders of leading Russian online retailer Ulmart are looking to sell 10-15% of their company to a strategic investor. At the start of this year communications giant MTS and multi-billion dollar holding Sistema obtained approval to buy 10% of Ozon in a deal worth a reported $150 million. However, the deal is yet to be confirmed. 

Source: Vedomosti

Top image via Shutterstock

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