Multikubik managed to raise 263 million rubles, its representative told Kommersant. In particular, 140 million rubles were invested by the Russian-Belarusian fund RBF Ventures, told Russian Venture Company, co-founder of RBF Ventures. The Internet Initiatives Development Fund (IIDF), which invested 150 million rubles in Multikubik early in 2017, invested 60 million rubles during this round, IIDF’s representative reported. The remaining amount was invested by business angels, including Fyodor Zakharov, General Director of “Arktika” thermo flasks, and Pavel Roitberg, former Commercial Director of NTV Plus.
Investments will be used to increase sales in Russia, the United States, to develop a new version of the product and reduce the cost of the device, said Mikhail Fedotov, managing partner of RBF Ventures. The business model of the company will make it possible to rely on the market in the amount of $ 1 billion, says Nikita Yuriev, investment manager of the IIDF. According to Kartoteka.ru, the revenue of Multikubik LLC in 2017 amounted to 188.2 million rubles.
Multikubik produces mini cinema projectors in the form of a cube 8x8 cm in size under the brand Cinemood. The device runs on its own operating system and includes both the built-in library of cartoons, and movies, TV channels, music from third-party online services. Multikubik’s products are used in 117 countries, the company reports.
Multikubik CEO Mikhail Bukhovtsev told Kommersant that the company intends to launch a new business model while providing access to Cinemood’s ecosystem by subscription. He expects that this will allow “to multiply sales and make the product accessible to the mass segment.” In Russia, the devices cost 25-30 thousand rubles, in the USA — $ 300-400.
The United States has become one of the leading markets for Multikubik. In 2017, the region accounted for 12% of the devices sold, and this year — 20%, said Multikubik’s representative. Pavel Zhuravlev, head of the company’s American office, expects “ the content supply to increase in the USA.” By 2023, the company will be able to occupy a “substantial share in the smart home market,” he said.
In May, “Kommersant” wrote that the joint fund of VEB and the Indian holding company Srei Infrastructure Finance Viman Capital signed an agreement of intent with Multikubik to invest $ 5 million in the company. The deal has not been signed yet, it is scheduled for the middle of 2019, said Multikubik’s representatives. Viman Capital has signed agreements on deals with several companies at once, according to the VEB Innovations Press Service:
Multikubik is one of the few, if not the only project that produces hardware for users, which was able to achieve significant success in the international market, said Alexey Soloviev, partner at iTech Capital. The expert argues that the company is in its fifth year of operation and despite of this fact it still raises very insignificant investment rounds. It shows that, despite its merits, there are still many open issues in terms of business, revenue growth, profitability.