Mubadala, RDIF, Flashpoint and others to invest c.$40m in ivi, the leading Russian OTT Video on Demand service
A consortium of investors, including the Russian Direct Investment Fund (RDIF, Russia’s sovereign wealth fund), Mubadala Investment Company (UAE), and other investors, including Baring Vostok Private Equity Fund IV, Flashpoint VC, RTP Global and Winter Capital, have reached an agreement to invest c.$40m in ivi, the leading Russian OTT Video on Demand service. The transaction is expected to close by the end of July, 2019.
ivi currently holds 42% of Russia’s licensed professional OTT Video on Demand market. In 2018, the company’s revenues reached RUB4bn (ca USD63m) growing by 62% year of year, further strengthening its leadership position in its market. Okko, the second player in this market has less than 20% market share. The proceeds from the transaction will be used to further accelerate ivi’s growth and solidify its market-leading position.
Alexander Konoplyasty, Managing Partner of Flashpoint, said:
“We are very proud of the tremendous growth ivi has experienced, becoming the dominant player in the Russian video on demand space, or the ‘Russian Netflix’ as some like to refer to ivi. We had the honor to partner with ivi’s outstanding management team and support its execution efforts in the past four years. We are confident that the additional capital boost will further boost ivi’s growth and allow it to launch new technological innovations.”
Oleg Tumanov, CEO and Founder of ivi, added:
“We are glad to be supported by our existing shareholders and attract additional capital from a pool of new investors led by RDIF and Mubadala. A strong interest of Russian and foreign investors is crucial for further development of Russian legal video-on-demand market. This investment will boost ivi development and provide an opportunity to improve content offering for our users, particularly, due to the expansion of our own content production.”