Online reputation management agencies Sidorin Lab and Reputation Lab have attracted $3mn in equity funding from a pool of individual investors in exchange for a 30% stake in each company. Among these investors is Anton Alikov, a partner at Switzerland-based Blackfort Capital, reports East-West Digital News (EWDN).
The fresh funding will be used for business development and software development purposes. The companies is also considering the acquisition of social media monitoring agency IQ Buzz, perhaps with additional funding.
In 2018, Sidorin Lab and Reputation Lab combined generated 165mn rubles in revenues (nearly $2.5mn). Their EBITDA and net profit amounted to 61mn rubles (nearly $950,000) and 9mn rubles (nearly $140,000), respectively.
The Russian market of online reputation management is embryonic. It has been estimated at some 16bn rubles (around $242mn at the current exchange rate) with the potential to reach 43bn rubles ($650mn) by 2023.
Ashmanov & Partners, Digital Guru and Kokoc Reputation are among other key players in this field.