Deal Mates Sdn Bhd, an e-commerce company offering flash sales on its website, has acquired Ilovediscount.com, an online group buying company, as part of its expansion strategy in Malaysia.
The acquisition will swell the number of members for its shopping site dealmates.com to 750,000, including the 250,000 members from Ilovediscount.com.
Dealmates, the owner of Dealmates.com and online parenting flash sale, GoMummy.my, expects to generate a revenue of RM30 million this year while Ilovediscounts.my’s current forecasted revenue for 2013 is an estimated RM7 million.
“The acquisition is seen as an opportunity to grow Dealmates’ market share quickly and effectively...The combined figures place Dealmates in the position of being one of the largest and most active online shopping memberships in Malaysia,” the company said in a release.
While DealMates was set up in 2011 as a joint venture between Catcha Group Sdn Bhd and Intel Capital, Ilovediscounts. my was founded at the tail-end of 2010 by partners Edwin Koh, Andy Teh, Davie Saw and Desmund Hang under Aeterno Sdn Bhd.
As the online group buying industry boomed in early 2011, the websites saw significant growth in group buying space, marketing deals focused on the travel and leisure, health and beauty, and food and beverage sectors.
With the launch of the new Ilovediscounts website on April 1, members can now access huge offerings of product and service deals on the website.
“With the new partnership, we are confident Ilovediscounts.my will see a 100% jump in revenue beginning this April 2013,” said CEO of Dealmates, Ben Cadman.
Flash sales or one deal a day, is an e-commerce business model in which a website offers a single product for sale for a limited period.
Potential customers register as members of the deal-a-day websites and receive online offers and invitations by email or via social networks.
The websites in Malaysia that offer similar services and products are milkadeal.com and groupon.com.my, among others.