Groupon Expands to Israel



By: BUSINESS STAFF  
Published: January 11th 2011
in Economics » Israel

Groupon Logo

Groupon has acquired Israeli competitor, and market leader, Grouper in an effort to expand into Israel.

 

The announcement for this acquisition also mentioned the acquisition of two other competitors; SoSasta from India, and Twangoo from South Africa. Subsequently, Groupon has announced the launch of Groupon Israel, Groupon India and Groupon South Africa.

 

Grouper is considered the market leader in Israel and serves mainly Tel Aviv and its surrounding cities. While Groupon’s business model is easy to replicate, as evidenced with dozens of copy cat operations opening in all major cities, the maintaining of relationships with merchants is the difficult and expensive part. Groupon recently raised $950 million in a round of financing, of which a part will go towards international expansion.

 

Groupon, one of the biggest Internet success stories of the last few years, famously turned down Google’s purchase offer of $6 billion.

 

All three sites will be rebranded to the Groupon name and design in the coming months. Terms of the deal were not disclosed.



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