Rocket Internet’s Russian empire just got more bigger with its venture Lamoda raising $130 million led by Access Industries, including Summit Partners LP and Tengelmann in its third round of funding as reported by Wall Street. The investment has been stated as one of the largest investments in Russia till date.
Founded in 2011, Lamoda claims to have served more than 1 million customers till date and has more than 1200 employees with offices in Russia and Kazakhstan.
The company have not disclosed the details of its previous funding. The previous investors include HV Holtzbrinck Ventures adviser, AB Kinnevik and JP Morgan. The company’s last funding round took place in September last year and was led by JP Morgan, which has invested in a number of Rocket companies including Zalora, Namshi, Linio and Lazada.
Rocket’s Lamoda in Russia, similar to Jabong in India
The emerging Russian ecommerce market is considered to be one of the most difficult markets to survive but Rocket Internet’s success has made the investors to change their outlook. Also, according to investor documents leaked from Rocket Internet, revenue in 2016 for Rocket Internet is predicted at being around €1.5b, increasing from last year’s €45m – Thus making clear the reason for such large funding.
Apart from Lamoda, the other ventures of Rocket Internet in Russia include Cuponation.ru, providing promo codes and deals for most popular online retailers and Westwing.ru, a Home Decor store. Rocket Internet previously raised $100mn for its SEA markets focused online fashion venture Zalora.
The other big players in Russia includes OZON (considered as Amazon of Russia) and KupiVIP (online shopping club in Russia).