Groupon.com enters India

The US-based e-commerce portal has acquired an Indian daily deals website, SoSasta.com.

US-based e-commerce portal, Groupon.com, which sells daily deals coupons of local retail outlets, has entered India.

In an official communiqué, the company discloses that it has acquired a Kolkata-based daily deals site called SoSasta.com, present in 11 cities in the country. SoSasta.com will now be revamped and re-branded as Groupon.com.

Groupon.com is a group buying site, which presents a huge "discount deal of the day" everyday, on lifestyle-related services, such as restaurants and hotel accommodations. The site works on the concept of hyper-local and collective bargaining. It usually presents deals to its members in their nearby areas. Thus, different deals are offered to members based on the locations from where they log on to the site.

The discount deals are usually opened for certain durations. To avail a discount, members first have to express interest in the deal of the day. However, whether they get the discount deal or not is a function of the number of members who show their interest in the deal. The deal can be availed by members only when a specified number of members (critical mass) apply for it.

Apart from India, the site has also ventured into Israel and South Africa, through the acquisition route. In Israel, it has acquired a daily deals site called Grouper.co.il; while it acquired Twangoo.co.za in South Africa.

"Collective buying is in its infancy in India, Israel and South Africa and we see strong potential," says Rob Solomon, president and chief operating officer, Groupon.

Groupon.com has more than 50 million subscribers in 40 countries. In December, Google tried to purchase the site for $6 billion. Recently, Groupon.com has raised funds of $950 million from venture capitalists.