Groupon India announced with acquisition of SoSasta

Groupon India announced with acquisition of SoSasta

Summary: Groupon has acquired websites offering coupons to local stores in India, SOuth Africa and Israel to expand their presence outside the US.

SHARE:

The current  Silicon Valley favorite raised $950 Million from investors after rejecting a $6 Billion bid from Google. Two year old Groupon has been the talk with their phenomenal growth. Groupon offers collective buying of coupons to products and services provided by offline merchants which allows them to bridge the viral Internet with the brick and mortar stores. Being in this position Groupon seems to have figured out a useful Internet advertisement model.

Google’s interest in the company validates their title as one of the hottest Internet business as of now. With the new round of VC money, Groupon has decided to expand their operations to India, South Africa and Israel by acquiring websites that offer local deals in all three countries:

The three websites will transitioning to Groupon branding in coming months. Rob Solomon, Groupon COO said, “Collective buying is in its infancy in India, Israel and South Africa and we see strong potential. Groupon is shaping the way local merchants market themselves in every corner of the world.”

Groupon’s expansion is crucial since it is fairly possible to assume Facebook’s interest in the market segment. Facebook has a large (social) user base and with products like Places where they are partnering with local stores it won’t be a surprise if we saw Mark Zuckerberg announcing a service that will allow you and your friends to buy coupons to products based on your interests. With the amount of data that Facebook mines through finding similarities between your friends and suggesting offers is within the realm of possibility.

Smart move by Groupon.

Update: Groupon's Press release can be found here.

Topics: Browser, Software Development

Manan Kakkar

About Manan Kakkar

Telecommunication engineer with a keen interest in end-user technology and a News junkie, I share my thoughts while preparing for my Master's in Information Management.

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Talkback

3 comments
Log in or register to join the discussion
  • RE: Groupon India announced with acquisition of SoSasta

    This "pick the cheapest guy willing to come on board" strategy will not work in markets like India, etc. It's a high friction market that needs huge sales teams on the ground - some existing guys like snapdeal.com are much better positioned to win the market.
    AJ4ever
  • The Israeli Market

    I've made a research on the Israeli market for an anonymous client in that field. It seems Groupon may acquired the wrong site there. www.Grouper.co.il was the first player in that market but www.BUY2.co.il took over very quickly since the are owned by Mako, the leading media group in Israel.
    davidsh888
  • RE: Groupon India announced with acquisition of SoSasta

    The primary concern for Group buying sites here is that, there is no entry barrier for others to get in to this business. Of late one more site called groupoff.com has started providing deals. It has even went to the extent of selling Samsung Galaxy Tab just @ Rs.50(primary motive was to create a huge database). And now they are running a contest where you have chances of winning iPods, iPads and even a Toyota Etios Liva!(My God...! I don't see any other site with such offers around) Please check out www.groupoff.com to know more.
    pkdash83