Get our rare newsletters
Contact GoalEuropeIf you have questions or need a consultation, get in touch.
Russia’s Craig’s List Avito has raised a whopping $75 million from Accel Partners. Avito is the 18th most visited site in Russia, and sees 30 million unique visitors per month, according to Venturebeat (Avito says 14 million on its website).
Avito is a free classified ad site, but it is unlikely that the backers have put money behind something that is free. Slando, the Eastern European free classified site was sold to Naspers, for an estimated $50 million, although later estimates reduced this figure. The leading Polish ecommerce group Naspers / Allegro Group appears to have got a better deal, also less traffic, but Avito is not just about classified ads. Here is what I think it is about.
At the moment, the company makes money on allowing featuring ads and place banners. Its website is offering online stores to open shops within Avito, and given the traffic it should be able to take on Ozon with a full blown online shopping experience, or better still, become Russian Ebay.
The company was founded in 2007, it has been created by Swedish nationals Jonas Nordlander and Filip Engelbert. Forbes estimated that in 2011 the company generated $10 million revenue, and facilitated over 12 billion Euro is sales.
It is possible that Accel invested at a low valuation, as one of the previous investors predicted in 2010 that the company can be worth as much as $1 billion. Avito’s backers include Accel Partners, Baring Vostok Private Equity, Kinnevik, and Northzone.
+44 (020) 3290 3544
vita at goaleurope dot com