BayRu has been selected as the Built In Chicago Startup of the Month for June, sponsored by Marengo Hampshire Parters. We recently did a short Q & A with BayRu CEO Aaron Block:
What is BayRu?
Aaron: Bay.Ru is the fastest growing global shopping site in Russia/CIS. Through operations in Chicago, Moscow and St. Petersburg, the company sells goods from the USA to Russian consumers. Bay.ru was the first cross-border ecommerce business in Russia and today offers consumers the broadest selection of in-stock products, American-style customer experiences and the most consistent home delivery. Integrated product catalogues from retail affiliate partners eBay and Amazon have helped build large marketshare across many categories, including auto parts, electronics and fashion. Bay.ru has shipped nearly 200,000 items to 160 cities in Russia/CIS.
Why Chicago if BayRu is a Russian company?
Aaron: Bay.Ru was started by two Russian immigrant brothers--Anton and Gene German--whose family moved from St. Petersburg to Skokie, IL in the 1990s. Fortunately, the Chicago area also has a plethora of professionals who a) speak Russian and b) understand the challenges of cross-border shopping for popular brands like Apple, Levis, Invicta, and Timberland.
What are the challenges of running a Russian company in Chicago?
Aaron: Recruiting is always tough. For example, we compete for a small pool of talented, local Ruby on Rails software developers. Our airports are great but there are no longer direct flights between Chicago and Moscow.
What do you love about building your company here? How many employees do you have? How many do you plan to hire?
Aaron: We love the support from the vibrant tech/start-up community in Chicago. BuiltInChicago, ITA, 1871, LightBank, Illinois Launch, NWV, i2a, etc. The list of resources available and experienced entrepreneurs/investors could go on and on! I like spending time in the Valley and NY but Chicago is a great place to grow a technology business.
Bay.ru employs more than 40 people in the Chicago area, up from only 17 a year and a half ago. We're always looking to selectively add visionary ruby developers, seasoned ecommerce specialists and call center staff to our team. We especially love anyone who speaks Russian!
What are your current revenues and where do you hope to be in 1-3 years?
Aaron: Already, Russia is the largest internet market in Europe. According to Yandex, 2011 saw ~$7 billion in Russian ecommerce sales; that will grow by ~17% each year. We hope to reach a $40 million run rate by the end of this year and we expect to be a $500 million/year business within five years.
