Internet and media group Naspers paid $1.2bn today to increase its stake in one of its portfolio companies, Russia-based classified listings platform Avito, from 17.4% to 67.9%.
Founded in 2007, Avito claims to be the largest classified listings website in Russia and the third largest in the world, with more than 50% of its 35 million monthly visitors now accessing it through mobile.
Avito’s revenue increased by 76% in 2014 to reach $76.5m, after it moved to strengthen in several areas, including automotive, real estate, employment and services listings. It also recently acquired a controlling stake in Russia-based online delivery service CheckOut.
Naspers invested $50m in Avito in 2013, after venture capital firm Accel Partners had provided $75m the previous year. Avito had previously raised about $26m from backers including investment firms Kinnevik, Vostok New Ventures and Northzone.
Kinnevik and Vostok subsequently acquired a combined 1.7% stake in Avito for $30.6m in September 2014.
Kinnevik is divesting its entire 31% stake to Naspers for $846m in the deal, making a 13 times return according to Unquote. Vostok will retain its 13.3% share of Avito, which was valued at $2.7bn in the transaction. A total of $240m of Naspers’ investment will be pumped into the company.
Bob van Dijk, chief executive of Naspers, said: “As an early investor, we are excited about the long-term prospects of Avito. The Russian e-commerce market is expected to grow significantly, with more people gaining online access. Over time, e-commerce ratios should move in line with other large countries.”
The deal represents a change in strategy for Avito, after CEO and co-founder Jonas Nordlander told Bloomberg last month the company, valued at $2bn by Vostok New Ventures in June, was preparing for an initial public offering.