Groupon willing to look at inorganic growth in India
Deals and discounts website Groupon is unfazed by the profitability issues plaguing the Indian e-commerce sector, and is betting big on the mobile revolution to drive its growth in the country.
The Chicago-based company may also do some shopping of its own in India and is looking at acquiring companies which are complimentary to its own business—such as fashion, food and beverage and online ordering.
“Let us be clear, both us and the industry are just scratching the surface of the 300 million-strong middle class. More than 20 per cent of our deal redemptions are done through the mobile interface, which is our next focus area for growth,” said Kal Raman, Global COO, Groupon, while addressing reporters here on Thursday.
“The inorganic route is promising and open for us. As long as whatever company we acquire adds value, we will be looking at it,” he added. The company, at present, has tied up with over 15,000 merchants (small, medium and national).
Groupon India, which has three offices in the country, recently set up a R&D centre here—which is the company’s fifth such centre worldwide.
“The new research centre currently has around 200 employees and will work on not only developing software for our global operations but also help in supply chain management. My personal wish is for it to become one of our biggest,” Mr. Raman said.
Groupon entered the Indian market in 2011 with the acquisition of Kolkata-based SoSata, which was eventually rebranded as Groupon India.