Snapdeal snaps Grabbon
Some amount of consolidation taking place in group discount space after emerging in mushroom fashion 7-8 months back. Snapdeal, a group discount site promoted by Delhi based Jasper Infotech has acquired Bangalore based Grabbon, deal value has not been disclosed and it is termed as strategic acquisition by both Snapdeal and Grabbon.
Interestingly Grabbon is the 1st Groupon clone to hit the Indian market and founded by Tony Navin, Jackson Fernandez and Balamurugan all XLRI graduates. Few weeks back i interviewed Jackson, you may check here.
Benefit for Snapdeal from this acquisition- :
- Seasoned management guys who know the nitty gritty of discount space and have executed this model quite diligently.
- Getting Bangalore as a market where Snapdeal has no presence and being tech savvy metro, this model brings lot of value and readymade market for them by acquiring Grabbon.
Whats up for Grabbon in this deal -
- Getting an umbrella company in Snapdeal which is financially well off and it can steer them well.
- Can able to address and access the Snapdeal market through this acquisition
Group discount space is really heating up with merger and acquisitions, Taggle has secured a mammoth funding of above $8M from Greylock partners and Battery Ventures. Prominent players who remains in this space are Mydala and Koovs.
-Hitesh, vcBytes.com
