MallStreet.ru sees sales grow 5-fold in one year, secures $1 million in second-round financing
MallStreet.ru, a Russian online retailer that until recently had remained under the radar, has just secured $1 million from investors in its second round of financing in less than a year.
Neither the site’s valuation nor the investors’ identity were disclosed, but Mallstreet CEO Dmitry Shashkin told East-West Digital News that French business angel Fabrice Grinda took part in both rounds.
“The other investors are mostly individuals, dividing 50/50 between Russians and foreigners,” he said.
The funds raised will be used to enlarge the assortment of children’s goods and items for the home, garden and pets.
Mallstreet.ru’s diversified product offerings currently include portable electronics, home equipment, things for the home and garden, computers, cosmetics and fitness products, children’s goods, and others.
The site claims to be “the first online store in Russia that not only competes on price, but also provides customers with professional advice as well as high-quality delivery and aftersale service.”
Although not profitable yet, Mallstreet.ru generates $1.5 million in monthly sales, Shashkin told EWDN, a five-fold increase since the spring of last year. Should such growth rates be maintained, MallStreet.ru could break into this year’s top 30 Russian online retailers.
With a number of publications in the press and association activity, Shashkin has registered himself an active campaigner against Russia’s “gray” e-retailers, who dodge taxes in order to sell cheaper and maximize their profits.
- RUSSIAN E-COMMERCE REPORT 2012 – The total volume of Russian online retail reached 310 billion rubles, a little more than $10 billion, in 2011, up 25% from the previous year. EWDN’s research study of Russian e-commerce, which contains an exclusive ranking of the Top 30 Russian online retailers, will be available soon. To receive free insights or to order the full version, please contact us at email@example.com.