LetyShops

LetyShops - cashback service

History

2022: Loss of $50 million due to service departure from Russia

Ukrainian cashback service Letyshops lost $50 million due to leaving Russia. This was announced by the founder and CEO of the company Igor Gnatovsky in May 2022. According to him, the platform will never return to the Russian market.

Maybe for the "businessman" such ultimatum decisions are not entirely logical, but I do not claim to be called a businessman. I prefer and strive to be an entrepreneur who operates on meanings and creates value. And there are no places in this entrepreneurial paradigm of Russia, "Gnatovsky wrote on his page Facebook in (activity Meta (social networks Facebook and) Instagram is banned in Russia as extremist).

Letyshops lost $50 million due to departure from Russia

According to the businessman, as a result of the military conflict, his house was destroyed, and the Letyshops office in Kiev was converted into a temporary residence for refugees.

Back in early March 2022, Igor Gnatovsky announced that Letyshops had stopped working in Russia. According to him, the service "cannot continue to work in Russia while fighting is underway in Ukraine." Then it was reported that Letyshops closed the withdrawal due to the "geopolitical situation in the world."

Judging by that statement, Letyshops was not going to leave the Russian Federation completely, but suspended work. At the same time, the general director of the service did not say anything about the current balance of cashback on the blocked accounts of Russians - it will be preserved or canceled, and also did not indicate the timing of the resumption of work.

As a result, the service stopped working, and the owners of Russian accounts lost the opportunity to withdraw cashback from the account, even if it is already in the status of "credited."^[1]

2020: Attracting $3 million of investments

In mid-July 2020, LetyShops attracted $3 million in investments from the German AB Capital Group, which four years earlier had already invested in this Ukrainian cashback service.

Director General Igor Gnatovsky wrote about the new round of LetyShops financing on his page on the social network. According to him, the money received will be spent on scaling the startup's international business. In particular, projects are planned in Spain, Germany, India and other countries.

The company hopes that investments will help increase profits by LetyShops a third due to more aggressive scaling.

Our goals are ambitious, so we perceive current investments as intermediate... But investment is, of course, only fuel for the ship. What is more important is that we have a lot of talented and hardworking guys on board, so I believe that everything will work out with us, "Gnatovsky said.

Ukrainian cashback service LetyShops attracted $3 million

According to him, in 2019 LetyShops began to develop the international market, and already in June 2020 the share of revenue of "new markets" exceeded 30%. At the same time, the company is reducing marketing budgets in some countries, he said.

The head of LetyShops also added that by July 18, 2020, the company is testing new products that "give more value to Internet buyers," and advertising partners have the opportunity to attract more new customers (Burning Cashback, Similar Products with Cashback).

According to LetyShops 's own data, the cashback service by July 18, 2020 collaborates with 2425 online stores. The service is available in seven languages (Ukrainian, Russian, Spanish, English, Polish, German, Portuguese). According to SimilarWeb, the site LetyShops in May 2020 was visited by 4 million people.

Gnatovsky noted that the company planned to conduct another round of investments in the first half of 2021.^[2][3]

Notes