Russian marketing services for customer acquisition via Wi – Fi “Hot Wi-Fi” – has attracted 37.5 million rubles from the Fund for Internet Development Initiatives (FRII).
Earlier in 2014, Hot WiFi already received from the FRII accelerator investments at the seed stage, the amount of which was not disclosed. New investment is the second transaction of the Fund with the start-up, the results of which the share of FRII in Hot Wi-Fi will grow to 40%.
Hot WiFi will recieve investment in two tranches. Part of the money the company has already received, the remaining amount will be transferred in February 2018, following implementation of the KPI, said representative of the Fund. Received investment Hot WiFi plans to spend on product improvement and marketing.
FRII Portfolio Manager Ilya Korolev explained reasons for follow-on investments in the following way: “For three years, the startup has shown a tenfold growth in all business indicators, reached the international market and today working closely with top Telecom companies. The guys have high level of expertise, professional team that is able to grow quickly and knows exactly what she needs to grow the market.”
Hot Wi-Fi is a system for managing WiFi networks and marketing platform. The startup helps businesses to attract and retain target customers using big data analytics about users.
The company can learn how often customers use their services and receives feedback. Hot Wi-Fi also helps to run Telegram-channels, conduct surveys and promote mobile applications.
Hot Wi-Fi offers access centres to provide Internet access to those visitors who connect with through social networks. Hot WiFi clients are bars and restaurants, hotels, car dealerships and fitness centers.
To connects to Wi-Fi user has to select a social network (Vkontakte, Facebook, Twitter, Instagram) and to post advertising. The offer can be refused. Wi-Fi installation is free — monthly fee in Moscow is 5 thousand rubles per month.
Hot WiFi now works with three thousands of clients. The company’s clients include “Dodo Pizza”, Burger King, etc. This year the project launched sales in Canada, USA and Spain, a growing number of clients in the CIS countries.
“Our platform helps to gather an audience over Wi-Fi and then target ads to visitors. It can help to rate offline conversion rate and the effectiveness of advertising on actual visits to the outlets.
By the end of 2018 we plan to connect 20 thousand customers to our system and capture a tenth of the market”, — said the founder of Wi-Fi Hot Dmitry Stepanenko.
The volume of funds managed by FRII is 6 billion rubles. The Fund’s portfolio includes over 300 projects.