Ozon.ru has just secured $100 million in venture funding with a round led by ru-Net, an existing investor. Other participants in the funding include Alpha Associates, Rakuten and Index Ventures. The money will be used mainly to build out additional logistics infrastructure. Existing investors Baring Vostok Private Equity and Cisco did not participate in the round.
Ozon.ru is a pioneer of Russian e-commerce, having been founded in 1998, and generated $137 million in revenue last year. It is the largest e-tailer in Russia. The company has adapted to the Russian marketplace by establishing a network of distribution centres where customers can pay and retrieve their orders. They also have their own courier service (called O-Courier) and even offer it on a commercial basis to third parties.
Logistics continues to be one of the main obstacles to expansion of Russian e-commerce, and it’s very positive to hear of this investment.
While this is the largest funding of a Russian e-commerce company to date, Ozon.ru has lost some of its mojo to newer arrivals like KupiVIP, which announced a $55 million round of funding back in April 2011, also backed by some foreign VCs, and also earmarked for expanding its logistics and distribution capacity.
More information about the Ozon.ru deal is covered in the Financial Times blog.
The original press release from Ozon.ru can be found here.