Groupon has made its first move on an Australian rival, snapping up the Melbourne group buying site Crowdmass, launched by three university students.
The company also told AdNews today it would be a “top three player” in the booming Australian group buying market market by the end of the year.
Groupon Australia managing director Alexandra Podeanu said the Crowdmass deal was “more a talent buyout than an acquisition” but she did not rule out further deals.
According to a senior research manager at analyst firm Telsyte, Sam Yip, Groupon’s deal with Crowdmass was a surprise move. “It looks like Groupon is looking to acquire at the lower end of the market,” he said. “Everyone expected their first acquisition to be a much bigger operator. Crowdmass is very small. They’re obviously looking to build their database.”
According to Yip, the top four players in Australia control 80% of the group buying market, which Telsyte predicts will top $400 million by year’s end – Scoopon, Spreets, Cudo and Jump on It are the top four players at present.
Podeanu said Groupon expected the market to consolidate in the next 12 months, but that acquisitions were not a priority for the US company.
“It is not our defined objective to acquire someone but you never say no,” she said. “Our plans are to grow organically. Crowdmass is more a talent buyout. We met with them, we liked them, we wanted them to join our team.”
She would not be drawn on details of the Crowdmass deal but when asked if Groupon, which operates as Star Deals in Australia, would usurp current market leaders, she said: “We are feeling very confident. Absolutely we want to be number one. This is what we will be fighting for everyday. I expect we will be a top three player by the end of the year.”
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