IVI Raises $250M new capital to strengthen market leadership

IVI has closed a new funding round of $250 million from both external investors and current shareholders. The group of new investors was led by VTB and includes Invest AG and Millhouse. Flashpoint Venture Capital, Baring Vostok and the Russian Direct Investment Fund (RDIF) with its partners were among the current shareholders who participated in the raise. As a result of the funding round, VTB will become one of IVI’s largest shareholders, alongside Baring Vostok, Flashpoint and RTP Global, and will be represented on IVI’s Board of Directors.

The deal is the largest private equity transaction in Russia’s tech sector in recent years, illustrating the high level of interest among investors in the fast-growing online video market, with a focus on high-quality content, and also underscoring IVI’s market leadership. The funds raised will be used to further expand IVI’s content offering and production of its own content, as well as further development of IVI’s advanced technological platform and marketing initiatives. Goldman Sachs International and Latham & Watkins acted as exclusive financial and legal advisors to IVI, respectively.

Oleg Tumanov, CEO and founder of IVI:

“The media industry is undergoing a radical transformation. IVI is continuing to strengthen its leadership in video streaming and is focused on creating the best product offering for Russian-speaking audiences. The funds from this round will be used to expand our content catalogue, and to create a broad base for producing original content and attract top talent. We are creating the right conditions for content producers to monetise their best creative ideas by creating engaging and relevant stories for our users. We are also continuing to focus on further enhancing our service and user experience.”

Alexander Konoplyasty, Managing Partner of Flashpoint Venture Capital:

“As one of IVI’s early investors, Flashpoint is delighted that the company has made such great progress in its development and is able to raise capital from institutional investors while maintaining its market leadership. We confidently continue to support IVI in this funding round, understanding the further growth potential of both the market and the company.”

Yuri Soloviev, First Deputy President and Chairman of the Management Board of VTB:

“Our country has the largest Internet user base in Europe, and as a result digital transformation and the transition to online business create tremendous opportunities for dynamic companies that are national champions in the digital services space. This deal is another important step in the development of an open ecosystem that is being formed organically through the creation of strategic partnerships between VTB Group and other leading companies in their market segments.”

Dmitry Kamensky, Partner at Baring Vostok:

“As one of the first investors and the largest shareholder in IVI, Baring Vostok sees significant potential for further growth of the company’s business, based on users’ demand to watch the high-quality and varied content that IVI offers in the most convenient way. We will continue to support the team with raising the funding it needs, strengthening corporate governance and with strategic and other issues.”

Kirill Dmitriev, CEO of the RDIF:

“These investments by RDIF and its partners will support the business growth of a leading Russian online video streaming service, which has an audience of more than 50 million unique users per month. IVIA is a leader in its segment of the fast-growing Russian digital services market, and has significant growth potential both through collaboration with leading global studios and through production of own content.”