Letsbuyit looking for buyer says ex-CEO

The group-buying site Letsbuyit.com will be forced to put itself up for sale soon because it is unlikely to find the extra £70m funding it needs, according to the company's former CEO and co-founder Hakan Ramsin.

Speaking exclusively to silicon.com, Ramsin said today the pan-European business needs additional funding quickly which may force the company to look for a buyer. He said the current market conditions are making it almost impossible for dot-coms to find further financing. Ramsin said:"Letsbuyit.com needs additional funding soon which will be hard to find. The business model is viable but the market conditions have not been on their side. With 90 per cent certainty, the company will be bought by a large chain or an established bricks and mortar player." Industry pundits agree with Ramsin. Lars Waagstein, analyst at Jupiter communications in Stockholm said the company needs approximately £70m to reach profitability and the logical step would be to sell the company to a major player. Waagstein said: "The company has publicly admitted it needs additional funding. As the conditions are harsh at the moment, it seems they only have two options - either to sell the company or declare bankruptcy." Sarah Skinner, analyst at Durlacher research said Letsbuyit.com's impending sale may become a trend: "Dot-com companies looking to raise funding may find one option is to sell the venture as investors are wary right now." The company has recently laid off 20 per cent of its workforce in an attempt to cut costs. Redundancies were made across 14 European countries as the company centralised operations in Germany, Sweden and the UK. Stephen Cox, head of investor relations at letsbuyit.com declined Ramsin's allegations and said the company is not for sale: "We have always said we'll need extra funding at some point. The market conditions are hard right now, but letsbuyit.com have a sustainable business model. We are not looking for a buyer."