According to the news, Oktogo will use the additional capital to further develop the OTA’s domestic market, which is the only growing segment in today’s political environment. While outbound tourism has fallen, Russia’s internal travel is growing at an accelerated rate. Russia’s domestic hotels consists of mostly independent players, making integration of the properties a huge hurdle.
Various funds have injected nearly $40 million in Oktogo since the startup launched back in 2010. The previous round, in December 2014, came from Mangrove (Luxembourg), Ventech (France) and ABRT (Russia).
As for MCI, the firm has a focus on growth-stage investments in the CEE region, DACH countries (Germany, Austria and Switzerland), and in Russia and Turkey. The company, headed by Polish entrepreneur Tomasz Czechowicz, manages in excess of $1.5 billion.