Hotel booking startup Oktogo raises $11 million
Oktogo.ru, a leading Russian online hotel booking company, has attracted $11 million in its fourth round of financing since its inception in 2010. The funds have been brought in by Russian entrepreneur Victor Sazhin in addition to some of the startup’s existing investors.
These include Luxembourg’s Mangrove Capital Partners, France’s Ventech, and VTB Capital, the venture arm of the major Russian financial institution VTB, Oktogo’s CEO Marina Kolesnik indicated in an exchange with East-West Digital News.
Oktogo’s first round took place in November 2010 with the so-called “Super Angels” Toivo Annus (the founding engineer of Skype), Fabrice Grinda, Jose Marin, and Javier Perez-Tenessa.
In April 2011, the Russian startup closed a $5 million round with Ventech and Mangrove Capital Partners as well as the Russian fund ABRT. An additional $10 million was injected in March of last year in a round led by VTB Capital, in which ABRT, Mangrove and Ventech also took part.
Oktogo’s database comprises more than 250,000 hotels across the globe, including 5,000 in Russia. The site claims to attract one million users monthly. Its customers generate an average order value of $400, with the site earning a commission ranging from 10% to 20%.
The company’s turnover reached up to $30 million last year, according to Kolesnik’s estimate, up from $10 million in 2011, but “several times less” than her expectations for 2013.
This year may also see the startup reaching its break-even point, the business woman hopes.
Also striving for the status of ‘Russia’s own Booking.com’ is Ostrovok.ru, which attracted a whopping $13.6 million from Western investors in its Series A round in July 2011, followed by an undisclosed amount in its latest round in January of last year.
Another strong player, Ozon Travel, is the specialized arm of Ozon.ru, a leading Russian e-commerce player.
Data Insight has estimated the Russian online hotel booking market at $900 million in 2012.
First published in East-West Digital News.