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.
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 email@example.com – Anonymity guaranteed