Indian group buying site MyDala.com has raised Rs 18 crore (around $3.7 million) from Info Edge India. This is the second round of funding the company has raised from Info Edge – the first round was Rs 9 crore, raised in April 2011. MyDala.com had also raised an angel round of funding of $250,000 from Ajay Relan and Jayanta Basu of CX Partners (in their individual capacity).
The fund raising comes at a time when – from what we’ve heard – the cost of operations in e-commerce and related businesses in India is on the rise and salaries are going through the roof.
MyDala, rather, Kinobeo Software Private Limited, is one of India’s few Group buying businesses (correct us if we’re wrong), alongwith Groupon owned Crazeal.com and Groffr. Most of the sites in this space are daily deal coupon sites, with discounts without any guarantees of sales. Daily deal sites tend to make a flat fee on each deal, while offering customers a coupon, whereas group buying sites tend to take the complete payment from a minimum set of customers (following which a deal becomes ‘active’), and then later make the payment to the merchant.
Daily deal sites include SnapDeal (which had raised $40M recently), India Today and Axel Springer backed BagItToday, Accel Partners and Helion Venture Partners funded Exclusively.in, Sequoia Capital has funded FashionAndYou.com, Ebay India’s has launched Social Shopping, Rediff’s Deal Ho Jaye, Smile Interactive and Group Buying AG backed Dealsandyou.