Just three months later, in July 2011, Ostrovok raised another $13.6 million from General Catalyst Partners, AccelPartners, Founders Fund and Atomico Ventures as well as from prominent Western business angels.

The startup closed its third round of funding in early 2012, with Blachfold and other angel investors bringing in an undisclosed amount.

So far, Ostrovok has reached 135,000 hotels across the globe, including 4,800 in Russia and neighboring countries – less than what is claimed by its competitor Oktogo.ru, which has just raised $11 million from leading Western and Russian venture funds.

Another strong player, Ozon Travel, is the specialized arm of Ozon.ru, a leading Russian e-commerce player.

Booking.com and some other foreign players also have strong traction in Russia. The domestic online hotel booking market has been estimated by Data Insight at $900 million in 2012.

First published in East-West Digital News.