History

Investment company ru-Net Holdings

In 1999, a group of professional investors with a long track record in Russia teamed up with a US venture capital firm with the objective of investing in leading Russian information technology and Internet companies. The founders established an investment company which would support its investees with advice and guidance in management, reporting, and marketing, as well as facilitate inter-investee business relationships.

ru-Net Holdings’ pursued the strategy of building a group of leading Russian technology companies through both acquisitions and organic growth. In March 2000, ru-Net Holdings acquired a majority ownership in Ozon.ru, Russia’s leading online retail property. In April 2000, the company acquired a significant stake in Yandex, the most popular search engine and most technologically advanced Russian portal. In May 2001, the company acquired an equity stake in Vested Development Inc. (VDI), a software development outsourcing company. Also in 2001, ru-Net Holdings purchased four IT services companies and consolidated them under the brand TopS Business Integrator (TopS BI). In 2003, ru-Net Holdings raised additional funds from International Finance Corporation (IFC) and Intel Capital. During its lifetime, ru-Net Holdings executed 5 investment transactions, funded 4 start-up projects and executed 3 mergers.

By 2006, the ru-Net Holdings’ investee companies became successful, profitable and rapidly growing businesses. As a result of the decision to spin off the assets to the investment company’s owners, the shareholders of ru-Net Holdings received direct ownership in portfolio companies with the exception of Yandex, whose ownership remains through ru-Net Holdings (company name has been changed).

Investment company ru-Net II

Building on successful results of ru-Net Holdings, the new investment company ru-Net II was established in 2007. The strategy of ru-Net II is to invest in leading companies in rapidly growing segments of information technology, Internet, interactive entertainment, and new advertising technologies industries. The new company relies on the significant experience obtained during 6 years of ru-Net Holdings’ lifetime. ru-Net II had already made 6 investments in various technology companies during 2007-2008.

The certain ru-Net II investors are direct shareholders of Ozon, Yandex through ru-Net Holdings (company name has been changed), Systematica Group where TopS BI is a part of the group, and Epam after acquisition of VDI. Consequently, ru-Net II is managing these certain stakes.