Daily Management Review

Promising Internet Marketing Platform Solomoto Was Estimated at $ 32-40 Million


A platform for promotion of small and medium-sized businesses in the Internet Solomoto sold its 25% stake in to a number of investment funds for $ 10.8 million. The company plans to spend the money on international expansion.

picture: Fotobank/Getty Images
picture: Fotobank/Getty Images
Founded by Pavel Romanovsky, co-owner of Socialist Media, the online platform for marketing promotion of small and medium-sized businesses Solomoto sold out over 25% of its shares for $ 10.8 million to a syndicate of investors led by international venture funds Blumberg Capital, said one of the participants in the transaction. Thus, the entire company was valued at $ 32-40 million. Romanovsky and Blumberg Capital partner Alon Lifshitz confirmed the deal. According to Lifshitz, sum of the fund's investments amounted to "several million dollars" and founder of the project retained a controlling stake.

Romanovsky launched Solomoto platform in April 2014: the staff of his company's Socialist Media, which promotes social networks and other media sites, has regularly been approached by representatives of small and medium-sized businesses, but service Socialist, concentrated on the largest companies and brands for beginners companies was too expensive. Then Romanovsky decided to make a simple service for small players that would allow them to effectively move in the digital environment on their own. With the help of Solomoto small and medium businesses can manage all marketing activities via only one program – create communities in social networks, fill them, manage posts, etc. Solomoto also allows its users to build up an internet store, which will be placed in the network on a separate website and social networks. With Solomoto, a company can simultaneously run marketing campaigns at multiple sites and track statistics or, for example, create their own loyalty program. Access to basic capabilities Solomoto costs around $ 1 per day (excluding the cost of the advertising inventory). Additionally, a user can buy Solomoto’s editors posts for social networks, as well as purchase a site domain through the platform.

The global objective of the company is approaching new markets, and the money received from new investors will go to the expansion in the region, particularly in Latin America, since the country is experiencing the rise of Internet technologies and has booming small business - said Romanovsky. In April, Solomoto office launches in Brazil, in the middle of the second quarter of 2015 - in Mexico. Also, Solomoto English version is coming soon.

Up to this point, Solomoto, headquartered in Tel Aviv, evolved investors' money. To date, project has been invested about $ 3 million, says Romanovsky.

According to Centaur Partners, to the end of 2016 the web platforms and cloud services market for business will grow to $ 32.8 billion. In 2011, this market was estimated at $ 13.5 billion, predicting an annual growth of 19.5%.

Among the world's largest management services activity in social networks, including ones for small and medium-sized businesses are American Buffer with user base of 2.2 million customers and Hootsuite with 10 million customers and more than $ 280 million from venture capitalists. According to eMarketer, worldwide companies costs on advertising in the digital environment in 2012 exceeded $ 100 billion, by 2016 this figure will rise to $ 163 billion.

source: rbc