18. February 2013–
Russian e-commerce giant KupiVIP is looking to raise $125m in an initial public offering next year to finance warehouse construction and expand its distribution network. The company has already had preliminary discussions with Goldman Sachs and Jefferies & Co. about the planned stock market launch, though no mandate has been offered yet.
KupiVIP's planned stock sale is scheduled for 2014 in New York and was confirmed by founder and CEO Oskar Hartmann to Bloomberg. Russia's eCommerce market is growing rapidly and Hartmann predicts that in the next five years, half of the Russian population will be buying goods online.
Launched in 2008, KupiVIP is Russia's answer to the Gilt Groupe. The online shopping club offers customers designer products with discounts of up to 70 per cent off boutique prices for a limited time. The company reportedly has almost 10 million users.
More European IPOs on the way?
KupiVIP's latest IPO plans may be one of many announcements expected in the coming year. In January, Executive Vice President of NASDAQ Bruce Aust told the Wall Street Journal that some 20 European companies from the UK, Russia, Germany, Spain and Israel are seeking to float in the US – something he has not seen in "several years".
Recently, rumours ran rampant that Rocket Internet was readying for a potential IPO with speculation rife that Zalando would be going onto the stock market as an individual portfolio company. However, Zalando CEO Rubin Ritter has denied such rumours.
Last year, Moscow-based KupiVIP raised $38m funding round led by Intel Capital with participation from Acton Capital Partners, the European Bank of Reconstruction, Balderton Capital and Accel Partners. The company has raised a total of $104m in funding so far.
For related posts, check out:
Zalando founders discuss €1bn revenue, return rates, IPO rumours
Rocket Internet’s rumoured IPO – would it be madness or genius?
Damian Doberstein on a German entrepreneur’s life in Russia – and why he’s stepping back from KupiVIP