"Our strategy is to invest in leading technology-enabled consumer businesses in growth markets by partnering with strong management teams and like-minded co-investors. The investment in Quikr fits squarely with our strategy and we look forward to supporting its growth in the years to come,"said Mia Brunell Livfors, president and CEO of Kinnevik.
Kinnevik has put in the most $39.3 million in this round of the stake sale by the Indian online platform, with the others being Quikr's principal current investors including Matrix Partners, Nokia Growth Partners, Norwest Venture Partners, Omidyar Network, Warburg Pincus and eBay Inc.
Kinnevik's online investment strategy mainly focuses on investments around e-commerce and market places. The firm believes e-commerce is one of the strongest global growth trends in the world economy, which is based on a shift in consumer behaviour that is not a short-term trend but represents a permanent change in consumer behaviour.
India's e-commerce market grew at a staggering 88% in 2013 despite a slow economic growth and inflation, according to a survey by The Associated Chambers of Commerce and Industry of India.
The number of internet users in India is expected to more than double from around 200 million today to over 550 million by 2018. Similarly, retail online sales are expected to grow from approximately $2 billion today to $16 billion during that period.
Kinnevik already has existing investments in high growth e-commerce platforms in India and in the largest classifieds platforms in Russia, Sri Lanka, Bangladesh and Ghana. Quikr was the ideal investment as in its five-year history has already raised $150 million till date and competes with companies like OLX, which is backed by South African internet giant Naspers.