HeadHunter invests $5 mln in Cyprus-based YouDo in exchange for minority stake in service
MOSCOW. Nov 1 (Interfax) - HeadHunter Group has announced its investment of $5 million in Cyprus-based YouDo Web Technologies Limited, which owns the YouDo marketplace for helping consumers find professionals for home repairs and business tasks.
HH said in a statement that it would become a minority shareholder of YouDo following the deal, but did not disclose the exact size of the stake.
An informed source told Interfax the transaction had taken place through an additional share issue, as a result of which the stakes of YouDo's current shareholders reduced slightly.
YouDo was founded in 2012. The number of registered users is around 9 million, of which over 2.6 million are professionals offering services.
The statement said the funds raised from HeadHunter would be allocated for developing the B2B platform for self-employed persons - YouDo Business, which YouDo and HH have been developing as part of their strategic partnership since July 2021.
"The investment in YouDo is in line with HeadHunter's strategy to further expand beyond the core recruitment market and enter promising adjacent segments within the entire HR value chain," it said.
According to YouDo co-founder Denis Kutergin, YouDo Business enables companies to solve their business tasks more effectively by bringing in self-employed persons, while it allows professionals to increase their incomes. The project simultaneously makes it possible to solve the social tasks of reducing unemployment and legalizing unofficial employment in the country. HH's investment and synergy with the resources of YouDo shareholders will contribute to faster development of the B2B area.
According to Crunchbase data, YouDo has raised $24.2 million since its founding. Investors include PJSC MTS ; Sistema VC, which is a venture capital fund of AFK Sistema and whose assets portfolio also includes MTS; Flint Capital; and United Capital Partners.
MTS invested in YouDo in September 2018, acquiring 13.7% of Youdo Web Technologies Limited for $12 million.