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Klever Internet Investments invests in two Russian advertising agencies

0 10 March 2014

Klever Internet Investments Ltd. have invested in two Russian advertising companies. The largest deal was struck with advertising agency City Ads Media, in which they bought a minority stake for $5 million. Surfingbird, an online recommendation service also received an $2.5 million investment.

City Ads Media was founded in December 2010 by Alexander Savchenkov. It is an advertising agency with more than 40 thousand webmasters registered on their system, generating traffic for advertisers from 4 main areas: financial services, online games, e-commerce and e-travel, including air and rail tickets. 

Amongst City Ads’ clients are AliExpress, one of the world’s largest online retailers, Amazon’s fashion department Shopbob, Ukrainian International Airways, Citibank, Russian Standard Bank, Tinkoff Credit Systems and Gaijin. 

Alexander Savchenkov, CEO of City Ads Media, had this to say: 

“We are delighted to have closed the deal with Klever Internet Investments Limited. This partnership will not only allow us to expand the business more quickly into other markets, but will also allow us to combine our technology with their development strategy. Today’s global online-advertising market is worth $101 billion and the cost-per-action market alone is worth $4.7 billion. We believe that our company will become a major player in the world of online-advertising.”

They plan to use the new funds to expand the business, actively seeking out new advertisers and growing international sales.  

Klever’s $2.5 million investment in Surfingbird bought it a 25.1% share in the company, which is valued at $10 million.

According to the service’s CEO Sergei Shalaev, they plan to use the funds to develop the business and to “build on the progress made in the past year”, with international expansion not currently a priority. Surfingbird has already received investment from business-angels in the past, with a $400,000 deal followed by another worth $2.5 million. 

Klever Internet Investments Limited are an investment firm founded in early 2012, owned by PIK founder Yuri Zhukov. Other startups to have received investment from them in the past include Workle ($3.5 million) and Moe Delo ($4 million).

Top image via Shutterstock

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