A mere 14 months since its inception, Group-buying site DealsAndYou has managed to acquire US$ 17 Mn from a group of investors, including Mayfield Fund and Norwest Venture Partners. The funding is meant for revamping the website and bolster the user interface. The other investors are Nokia Growth Partners and Intel Capital.
Though the exact amount of stake the company divested to these investors is kept a secret, sources speculate it could be 18-20%. By that calculation, the company is currently valued at US$ 85 Mn.
Gaurav Kachru, Co- Founder and Chief Executive of DealsAndYou, revealed that the company was planning to become a more aggressive player in the e-commerce space with the funding. He said, “We will invest the amount in four strategic areas — technology, infrastructure, talent and branding.” Though DealsAndYou is not new to funding, it had earlier received $1.5 million from Group Buying Global AG, this is the first Venture Capital (VC) funding the company has bagged.
DealsAndYou does not exactly rival flipkart as it is an online group-buying site that features daily deals on the best things to do, see, eat, and buy in leading cities. Despite the global economic downturn, e-commerce sites in India are witnessing increased interest from VC firms as they have proven to be a success.
Last month, Valyoo Technologies which runs branded eyewear site Lenskart.com, raised $4 million. VC firm Helion Advisors invested in hoopos.com. With a growing number of internet users in India, the e-commerce space is likely to see more momentum. This is not the first time Mayfield Fund involved into funding, in the year 2009 Consim (formally known as Bharatmatrimony) raised funding of $11.75 million from Mayfield Fund along with Yahoo and Canaan Partners.