Snapdeal Acquires Grabbon – Have They Got Funding From Sequoia?

The group buying space is getting hotter by the minute. Another acquisition news comes through the doors with Snapdeal.com a startup founded by Delhi based Jasper Infotech acquiring Grabbon which is a bangalore based group buying firm. This is the second acquisition in this space as earlier Harish Bahl of SITG and Group Buying AG acquired Wanamo.com and rebranded it to Dealsandyou.com. Our sources say that a capital investment of 3.5 million dollars is part of this deal.

snapdeal-grabbon

While there has been acquisitions and mergers there has been investments as well as Greylock and Battery Ventures have committed $8.75 million to another Bangalore-based site Taggle.com. Our sources say about 10% of the funding money has been deposited in their banks. There has also been angel funding by private equity firm CX partners into Delhi based Mydala.com.

Rumours are rife that Global group buying site Groupon is keen to enter the asia markets and may look for setting up base or acquisitions as well.

We have also been tipped off that Sequoia Capital are close to funding Snapdeal. The details are not known but those close to the deal say its upwards of 5 million dollars. Though this is again not from company sources and hence cant be confirmed with certainity.

Whats your take? Is this space over funded? Crowded? What do you think would be the challenges for these players? Any tip offs you can email me directly at rajiv@watblog.com – Anonymity guaranteed :)

4 Responses to “Snapdeal Acquires Grabbon – Have They Got Funding From Sequoia?”

  1. akash
    June 28, 2010 at 2:28 pm #

    Really? the Sequoia thing sounds absurd – take it with pinch of salt as just another rumor!

    • June 28, 2010 at 6:20 pm #

      Our sources tell us that the term sheet is being reviewed and signed as we speak.

  2. June 30, 2010 at 1:44 pm #

    Yes, I do think that the space has suddenly got crowded. One of the important things to notice is that, none of the players have established enough market share as such.

    I think a big player needs to come in and push in a lot of money in advertising first. As soon as people come to know that there is something as group buying they will definitely jump in.

    I’m sure when the model matures there will be considerable consolidation in this space. Lots of sites will loose vapor and tank. Others will sell out. The ones that remain will be the real players.

  3. Seasoned Investor
    July 2, 2010 at 12:43 am #

    With the reputation sequoia has built for itself in India, take their termsheets with a pinch of salt too – at least 3 companies I am in touch with had termsheets from them that didnt see any money or closing.

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