Foursquare strikes deal with Brazilian group buying website

Peixe Urbano joins forces with the location-based tool in a bid to reverse its fortunes

Brazil's biggest group buying platform Peixe Urbano announced a deal with Foursquare whereby users will be able to find offers in establishments near to them.

According to newspaper O Estado de São Paulo, Peixe Urbano, a Brazilian equivalent of Groupon (and also its main competitor) hopes to achieve a 30 percent growth in revenues in 2014 as a result of the partnership.

Peixe Urbano will pay a percentage to Foursquare for every purchase made through the platform and tips about the properties will be displayed on the app.

Through Foursquare, users can choose deals when using the "Search nearby" option and selecting the category "Deals" and have the offer voucher sent to them.

The partnership is the first of its kind in Brazil, where Foursquare claims to have one of the fastest-growing user bases.

Peixe Urbano was the first group buying website in Brazil and was founded in 2009. It experienced rapid growth - to the point it was considered to be Brazil's biggest internet success story of recent times - and in its first nine months of operation, the firm had managed to build a user base of more than five million people.

By 2011, at its peak, it attracted investments from TV presenter Luciano Huck - a Brazilian Richard Branson of sorts – and US venture capital house Benchmark Capital. 

However, the internet firm has experienced major changes in its business model since that golden and short-lived period, which included the sale of all its operations in Latin America and a mass retrenchment in 2012.

The group buying model in Brazil as a whole has also seen a massive decline in the last couple of years. According to consultancy e-bit, out of the 1200 websites that operated at any one time in the country since Peixe Urbano launched, more than half has been sold or gone bust - and those who managed to survive are looking to diversify their business models.