We had reported about the ValueFirst acquisition spree some months back when they bought over mGinger, Way2SMS.com and 160by2.com.
Now, the company has launched a free bidding site called fullonbids.com. This site allows users to register for free and then bid for any/all items on offer. The site allows bidding on approximately 30 products in a day that are valued at about Rs. 50,000. As per the rules, the bidder with unique and lowest bid wins and the company promises to send across the product to the winner free of cost and also with no additional shipping costs.
The target group of this site is adults in the age-group of 18-45 years. The initial product costs will be borne only by ValueFirst.
The obvious question to arise in one’s mind is how then the company intends to make money if it gives away everything for free? The answer lies in digital advertising. The company expects to make Rs. 11 crore in revenues in 2013-2014 through digital advertising on the site and has intentions of spending Rs. 5 crore on branding, marketing and promotions.
Speaking on the launch, Vishwadeep Bajaj, CEO of ValueFirst Digital Media said, “There is a huge gap in the market as far as bidding sites are concerned. The current bid sites are all paid sites; we are the first company to provide a fun destination to the consumers at no cost to them.”
As of today, ValueFirst which operates in all areas of digital – SMS, voice, e-mail, internet – boasts of having over 50 million registered users and of adding 40,000 users daily.
With the acquisitions and very optimistic revenue projections for FullonBids.com, I think I will reserve further comment until I see results.
What is your opinion on the same?