When Groupon – the U.S. based web behemoth – purchased Twangoo , a South Africa company, we felt that a new phase of M&A is starting in Africa. Groupon is the undisputed global leader in the crowd-buying business where group of people get discounts for shopping at stipulated time and place. But after rejecting Google’s $6b acquisition offer, it has come through enormous competitions, from copy-cats. LivingSocial which has received good funding from investors is leading this charge.
So, it was not a surprise that Groupon with the massive funds in their disposals were moving global, especially Africa to luck threats. That was when it picked Twangoo – the leader in South Africa in this sector. With South Africa done, it must be Nigeria. That is where Qluqlu and DealDey come into play. Both are still young and expanding. Possibly, if they execute, Groupon or LivingSocial could acquire them. With their offers, you can get a 30-70% discount if you crowd-buy with others! DeadDey is offering a 40% discount on retail fashion shop, 3stiches – right now.
How it works for QluQlu
1. Every week, we send out 2 or 3 emails with 30 — 70% discount on a service, product or experience in Lagos.
2. If you like it, click GET DEAL without delay to receive the coupon. Pay nothing upfront but act now because time limits apply.
3. Tell your friends about the discount so they can save too. The more friends you tell the better the discounts you get.
4. On a day of your choice, go to the Merchants with the coupon and pay the discounted price.
How it Works (DealDey)
Buy -Buy the deal by simply clicking the “Buy Now!” button. Remember that you have a limited time
Pass It On: Share the deal. Tell your friends “Deal Dey” so that you get the power of group buying. Share the deal via facebook, twitter, email or bb chat!
Experience – Experience the deal. Take your voucher to the business to enjoy your deal.
How do they make money? Through commission they share with merchants as they bring more customers to their stores. They are expanding and using the strong incentive-based referral system, these firms could just be bought over. Qluqlu is now covering Cote D’Ivoire, Kenya, Ghana, Senegal, Tanzania, and Uganda besides the home front Nigeria. DealDey is also moving national. Is that the new phase of going global?
The innovation in these firms and why they could become successful is the structure they have implemented. Dealdey has a variety of many interesting payment options – ATM, Bank, Credit card. This is basically solving the key problem that stymies Nigeria’s e-commerce.
Tekedia will be covering these firms and we wish them goodluck.