Klever Internet Investments has shelled out $5 million for a minority holding in Russian affiliate marketing and advertising firm CityAds Media. The transaction marks the first time that the ad firm has received investment from a private equity firm, according to VentureBeat.
CityAds will use the new capital for its international growth, expansion, and tech upgrade, the report added.
Deputy chief executive Oleg Mamedov elaborated more on the company's plans: "So far Russia has been our main market, but we're actively developing international activities now. Two new offices will be set up in the first half of 2014 in Asia, and we're planning to have eight representations outside Russia in total by the end of the year."
CityAds uses the CPA (cost-per-action) model to increase traffic conversion. Mamedov also told East-West Digital News that the company's main edge over its competitors are its high-tech features which include retargeting, upsell service, and dynamic creative optimization and pricing, the report detailed.
Alexander Savchenkov formed CityAds in 2010. At present, it has operations across Russia, Ukraine, Kazakhstan, Brazil, and countries within the European Union, VentureBeat reported.
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