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Biglion, a well-funded market leader in Russian daily deals industry has acquired Belarusian rival, Bongo.by, as reported by Russian Kommersant. Experts evaluate that the amount of the transaction is no more than $1 million, although there were no official figures released.
Biglion aims at the market of the former Soviet Union member states as well as wider Eastern Europe. In February 2012 the company launched in Kazakhstan. According to Oleg Savtzov, the company’s business development director, the cost of organic growth and growth through acquisitions are approximately the same. The acquisition of Bongo will allow the acquisition strategy, to enable smoother acquisitions in the future.
With funds of $25 million Biglion can surely afford to expand through acquisitions in the region. In Belarus it is estimated that 300 000 people use daily deals sites on a monthly basis and Belarusian market is estimated to be no more than $5 to $7 million dollars (the country has a population of 9.5 million, with GDP $14,900 per capita. In comparison, Russian daily deals industry in 2011 was estimated at $300 million. But despite a fairly small size of the daily deals industry, the ecommerce market in Belarus is estimated at $150 million, with 50 percent of internet penetration.
In the meantime another Russian daily deal site Kupikupon has acquired online salon booking service Moresalonov.ru, enabling its users to book salon appointments at the same time as buying coupons. The size of the transaction was not disclosed.
According to J’son & Partners Consulting, Russian top daily deals sites include (visitors per day in January-February 2012):
Biglion 2 340 000
Kupikupon 470 000
Groupon 380 200
Bigbuzzy 126 000
Vigoda 62 000
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