KupiKupon.ru, one of Russia’s numerous local deal sites, is in discussions with investors to raise between $10 to $15 million, reported Unova, a Russian site dedicated to high tech and venture news. To date, KupiKupon has received $6 million in previous rounds rounds of financing.
The site, which claims 4 million active users, intends to become the leading group buying service in Russia and the former Soviet states by the end of the year, said KupiKupon CEO Komil Ruzaev to Unova. “From the very beginning, we chose an aggressive geographic expansion strategy, opening offices simultaneously in Moscow and 12 Russian regions as well as some other countries of the CIS.”
Now available in 72 cities, KupiKupon plans to expand to 30 additional cities in the forthcoming months.
The startup’s ambitions are not limited, however, to Russia and neighboring countries. It announced yesterday that it plans to open offices in Finland, Sweden, Slovenia, Qatar, and the United Arab Emirates.
KupiKupon was founded in early 2010 amid the “Groupon fever” that hit Russia at that time. The startup received its first funding from Veritas Financial Europe in May 2010. Dozens of sites appeared on the market during that period, most of them nearly exact copies of the American Groupon.com model.
KupiKupon’s chief competitor is Groupon Russia, founded in March 2010 under the brand Darberry and acquired by Groupon.com in August 2010. The company recently claimed to control 80% of a market estimated at $200–$250 million.
Several other local deal sites are in the running for the top stop. KupiBonus.ru, launched in mid-2010, is funded by Fast Lane, the Internet incubator of Direct Group, an important Western fund operating in Russia. Vigoda.ru closed a round of financing last March with Access Industries. That same month, another ambitious site, Biglion, received funding from Russian VC Runet-II.
Founded in early 2010, WeClever.ru counts among the top players without having relied on investor money.
