Merar.com May Raise Equity to Finance Expansion (Merger Market Article)

This is a copy of an article released in November 2011.

Merar.com, an online platform connecting entrepreneurs and investors, may need additional equity to finance the planned geographic expansion and to pay for the launch of new services, according to Managing Director Petko Karamotchev.

A start-up launched in October 2010 with the seed funding provided by UK investors, Merar.com currently lists more than 1100 investment opportunities on its website, most of them from India, Russia and South Africa, looking for a total of USD 15.1bn in financing. However, the company wants to expand from emerging economies to more developed geographies such as the US and Western Europe, Karamotchev noted.

The use of Merar's platform is free of charge for the first three months, after which its members pay a monthly fee of USD 9.99. However, according to Karamotchev, the platform wants to scrap that model and to begin charging commissions from investment-seekers and investors, who succeed in finding suitable projects and closing a deal.

Merar.com is also looking to develop value-added services, the MD said, adding that it already offers copywriting services for projects whose descriptions are posted on the website. "We also already provide a direct, secure communications channel between the entrepreneurs and investors and we plan on developing additional services such as escrow and data room, some of which will be paid," Karamotchev said.

The company has no specific plan with respect to the timing for the possible fundraising process, but could move on with its international expansion next year, Karamotchev said. He would not comment on how much money Merar.com would want to raise, noting only that similar projects launched in the US have cost up to USD 20m.

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