Yet More Shopping Club VC: Mycitydeal Raises €4 Million
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Another discount shopping startup picking up some investment. Mycitydeal has raised €4 million ($5.6 million) in a first round of funding. Investors include eVenture Capital Partners, Holtzbrinck Ventures and Rocket Internet, and Mycitydeal will use the funds to establish its business in the UK.
SEE ALSO: Online Shopping Club KupiVIP.ru Raises Another $20 Million
Mycitydeal is built around the idea of bulk-buying networks. The site will offer one discounted deal per day, typically on a service - eg a restaurant voucher, or a spa day, or, even, as a spokesperson told me, something really indulgent like a trip to the dentist. If enough people take the deal, they get a voucher. If not enough people buy in, then no voucher.
Card details are stored on the site, but a user only gets charged when the sale is made.
The number of people that will need to buy in to a deal to make it happen will vary, but the spokesperson says that generally the more valuable the voucher, the more people will need to buy in. The site only launched its services in Germany earlier this month and so counts its users in the “thousands”. The company declines to give any figures for projected turnover.
This is the first round of funding for this site but other shopping clubs have also seen investment in the last several months in Europe. The Russian site KupiVIP raised $20 million earlier this month. Spanish site Privalia raised €8 million ($11.3 million). And Brands4Friends received €10 million ($14 million).
Posted In: E-Commerce, Money, M&A & Venture Capital, Venture Capital
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