Groupon buys into Israeli market

American grouped purchases giant Groupon has acquired the Israeli coupon website, Grouper, in a multi-million dollar deal. Local media reports estimated the deal at $8- 15 million. And that’s an impressive feat for Grouper, considering the Israeli social shopping company …

American grouped purchases giant Groupon has acquired the Israeli coupon website, Grouper, in a multi-million dollar deal. Local media reports estimated the deal at $8- 15 million.

And that’s an impressive feat for Grouper, considering the Israeli social shopping company was founded less than a year ago in March 2010, and only registered as a company in July of last year.

Grouper is Israel’s first social buying site that enabled customers to enjoy discounts by joining with friends to make group purchases.

Today, there are 19 other companies in Israel offering similar services, but Grouper -which will change its name to ‘Groupon Israel’– is the biggest. Reports show that Grouper’s annual turnover amounts to more than $565,000.

Grouper offers online coupons granting 50%-90% discounts on a variety of services, such as restaurant meals, spa treatments, or hotel stays.

The three Grouper founders said they created their marketing website on the Groupon model.

In addition to the Israeli site, the Chicago-based Groupon also bought coupon deal sites SoSasta in India and Twangoo in South Africa.

“Social buying is only just getting started in India, Israel, and South Africa, and we see great potential in all these markets. Groupon is creating and changing marketing by local businesses all over the world,” said Groupon president Rob Solomon.

These latest acquisitions come after Groupon completed a $950 million round of funding, and shortly after the company reportedly walked away from an acquisition offer from Google Inc. worth as much as $6 billion.

Groupon is considered the biggest online grouped purchases website in the world, with 35 million registered users.

About Viva Sarah Press

Viva Sarah Press is an associate editor and writer at ISRAEL21c. She has extensive experience in reporting/editing in the print, online and broadcast fields. Her work has been published by international media outlets including Israel Television, CNN, Reuters, The Jerusalem Post and Time Out.