This investment – the first by the International Finance Corporation (IFC), part of the World Bank Group, in Lamoda – aims to “support the company’s expansion as well as enable Lamoda to consolidate its sustainable growth while further raising environmental, social and corporate governance standards. It will also aid the regional development of the company’s express delivery network, Lamoda Express,” the press-release reads.
“Internet companies are speeding up modernization of the retail supply chain in developing countries, which is helping to promote consumer spending — a key component of economic growth,” said Atul Mehta, IFC’s Director of Manufacturing, Agribusiness and Services.
“Their investments in logistics, information technology and marketing are rapidly generating employment, especially for women and young people,” he added.
IFC also announced it would invest up to €15 million in Dafiti, Latin America’s leading fashion e-commerce group.
Launched in 2010 by German incubator Rocket Internet, Lamoda.ru has established itself as Russia’s number one online retailer in the shoe segment. The site has further extended its assortment to other fashion items and started serving neighboring countries such as Kazakhstan.
This rapid expansion has been fueled by substantial capital injections exceeding $200 million in total. The latest round of financing amounted to no less than $130 million – an absolute record on the Russian venture scene. The transaction took place in June of last year, involving Access Industries, Summit Partners and Tengelmann.
Among Lamoda’s other shareholders are Investment AB Kinnevik and JP Morgan.
Russia’s online retail market amounted to $19 billion in 2013, including approximately $3 billion in cross-border sales, a recent study by East-West Digital News revealed.
Lamoda disclosed neither its valuation nor its 2013 figures.
This article first appeared in East-West Digital News, the international online resource on Russian digital industries.