Groupalia mulls growth alternatives in Brazil

- Monday, May 23, 2011

Groupalia mulls growth alternatives in Brazil

Groupalia - the group deal-of-the-day sales website that serves Argentina, Brazil, Chile, Colombia, Mexico, Peru, Spain and Italy - will look to expand in Brazil either organically or via the purchase of other companies, according to CEO Joaquín Engel.

"In each market, we want to be the leader, or at least in second place," Engel was quoted as saying by América Economía. "In all of the countries we're already there, except Brazil, where we're fourth. Which is why, particularly there, we want to look at alternatives to grow organically or by buying a company."

While most markets have 4-5 similar deal-of-the-day websites, Brazil has about 15, Engel estimated. The Latin American giant is also home to a third of Groupalia's 6mn users.

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The company aims to distinguish itself from the competition by offering more tailored offerings depending on the user's buying preferences. "The competition is making us get more creative," he said, but Groupalia will stay away from mass mailings.

Created in May last year, the company expects to arrive at its anniversary with US$72mn in sales. In comparison, market leader Groupon moved US$760mn in 2010.

Groupalia recently received a capital injection of US$11mn - its third since its inception - and is considering another round with investors midyear for an additional US$20mn.