CatchOfTheDay has attracted a market value of approximately $200 million following a massive investment round that attracted the interests of James Packer, Seek co-founder Andrew Bassat and a hedge fund associated with the likes of Facebook and LinkedIn.
The deal would reportedly deliver a 40 per cent minority stake in the company to the consortium, which was made up of Packer’s Consolidated Press Holdings, Bassat, New York investment firm Tiger Global Management and Glen Poswell of Sydney asset management company, Gannet Capital. Worth some $80 million, the investment puts the company at a total valuation of around $200 million.
Tiger Global Management has previously invested $20 million a one per cent stake of LinkedIn, as well as forming part of a $180 million funding consortium for mobile and social games developer Zynga. It is also believed to have made significant investments in Facebook.
In a memo circulated to staff and published online co-founders Gabby and Hezi Leibovich, said the company, which operates CatchOfTheDay, Scoopon and other daily deal websites, would be able to move to new offices four times the space currently occupied. It would also use the funding to found two new daily deals sites - BrandStreet and GroceryRun - and look to acquire smaller internet startups in a bid to grow exponentially.
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"It was a tough decision, but when James Packer agreed to throw in discounted parking at the casino to all staff - we knew it was a deal we couldn’t refuse," the staff memo reads.
The Leiboviches wrote that their continued majority stake in the business meant they would control the majority of the decision making at the company in the near future.
“It is still early days in Australia when it comes to online retail and to support our next phase of growth we were open to overseas investors who could share a different perspective into the online retail market,” Gabby Leibovich said in a statement. “As well as bring new skills, advice and contacts to further our growth and expansion.”
CatchoftheDay launched in 2006 and acquired Scoopon.com.au in 2010.
The investments follow increasing interest in local IT companies, including a $60 million funding round to Atlassian and the recent acquisition of Melbourne mobile games developer Firemint by Electronic Arts.
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