It seems DealDey, a GroupOn clone in Nigeria, is growing stronger in the Nigerian market when GroupOn is struggling globally.
In a recent blog post by Jason Njoku about his discussion with Sim Shagaya (Owner of Dealdey and Konga), it was mentioned that DealDey’s Gross Revenue to date (December 2012) is over N200Mn ($1.27Mn) since launch in April 2011 and they closed out a blockbuster 2012 with N40Mn ($253,000) generated in Dec alone.
Jason had the opportunity to speak with Sim at an investor forum. iROKO actually share an investor with DealDey, Kinnevik AB, the €7Bn Swedish based investment holding company.
Sanaz Etebarian, the CEO of DealDey, also outlined some stats as outlined below
- DealDey has about 265,000 email subscribers
- DealDey ran a KIA motors campaign and sold 4 cars in 3-days at $25,000 each. That’s $100,000 in 3-days.
- After the reported $1Mn funding, DealDey hasn’t raised any further money to get to the huge number it’s generating.
Would the Daily Deals model work in Nigeria? I think time will tell. Nigeria is a nascent market and since it is still early days, the concept is still catching on like wild fire. Nigerians like to get the best deal from any purchase and if Dealdey continues to make these sumptuous deals available, they will surely be patronised. Apart from DealDey, Mocality Deals seems to also be making progress.
I would say the primary pull for merchants is the fact that this is one way they can promote their goods and service to a verifiable client base (through Dealdey) without wasting too much funds. Also we have Nigerians who travel regularly outside the country to bring in goods for sale and would like avenues to promote their goods.
For the buyers, Nigerians love bargains. You can tell from the way we seek after sales seasons in UK, USA and Dubai.
So kudos to the likes of DealDey and Mocality Deals, they are sure to still reap from the Nigerian market for months to come.
