LetsBonus to invest US$4.3mn to develop business

Thursday, June 9, 2011

Spanish online discount site LetsBonus, in a joint venture with US e-commerce website LivingSocial, is investing 3mn euros (US$4.3mn) in Chile to develop its service, the company's representative for Chile, Carolina Mandil, told BNamericas.

According to Mandil, Chile's IT development and widespread credit card use on the internet are the main drivers to start operations in the country.

"Internet penetration in Chile is quite important, but also the use of the credit card. There are other countries where people are not so comfortable putting their credit card details online, but not here," Mandil said.

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The investment will allow the company to attract more clients and to create an online advertising campaign.

"Currently, we have 500 clients in Chile, and we won't stop this first stage of the campaign until we have at least 1mn. After that, the strategy will be to retain customers by keeping the offers good," Mandil said.

Chile is the third country in Latin America where LetsBonus operates, after Mexico and Argentina, and will be soon followed by Colombia and Uruguay. For now, the company will stay out of Brazil due to the high investment needed to set up in the country.