Software developer behind Spreets’ group buying platform ramps up overseas licensing deals

The company behind the technology developed for group buying site Spreets has begun licensing its program to other companies overseas, saying the platform is earning more money and will help the business become independent.

Dealised, which is owned by venture capital fund Pollenizer, is marketing to Groupon clones in a variety of markets overseas and says the business will be sustained by small companies wanting to advertise on the new group buying platform.

“What we think is happening here is a whole new type of advertising that comes from small businesses using these sites. It’s another way for these sites to generate revenue, and is essentially a totally new advertising platform,” says acting chief executive Adrian Vanzyl.

Vanzyl says the company has been partnering with group buying sites overseas, with the aim of turning Dealised into a successful, independent business apart from its Spreets partnership.

“We’ve been licensing it out since last year. Obviously, the whole Spreets experience was educational and positive, and we’ve taken the opportunity to take the platform global. We know how to scale rapidly.”

“We took the platform global starting in Europe, so right now we’re in eight different markets, including a bunch of Scandinavian countries. We’re incredibly successful in Denmark, Norway and the Netherlands.”

Some of the sites using Dealised include SweetDeal in Denmark and Norway, and YourDeal in Sweden.

The software itself provides analytics, social media integration and the infrastructure to help organise transactions.

Dealised has also partnered with a group buying business in Britain in the past two weeks, and will begin searching for more opportunities in Europe and the United States.

While Vanzyl won’t reveal any of the company’s financials, he is confident the business is making substantial inroads and achieving revenue goals.

“We’re generating revenue from the Spreets relationship. And the money we are making in the first few months of being active with these other companies, is more than we gained from Spreets in the same amount of time.”

Dealised was built by venture capital fund Pollenizer to run the Spreets website, but is now run as an independent business. As it has a relationship with Spreets, Vanzyl says it won’t be offering its product to other group buying sites here any time soon.

“As much as we love Australia, it’s a small market. This has given us a mandate to go and aggressively grow the business.”

The fact Dealised is now promoting its platform for group buying is a testament to how swollen the market has become with Groupon clones. But Vanzyl says established media companies have a good opportunity to challenge market leader Groupon, but warns they need to act quickly before all the market share is taken.

“What Groupon does, or what its many clones do, is two things – you acquire an audience, which is really tough. I mean, how do you go to half a million on your mailing list? The second challenge is building a relationship with hundreds of small merchants.”

“We think this is a model where a big business can be powering hundreds of deals on a city-by-city basis in Europe and the United States.”

Vanzyl says companies thinking of getting into group buying, but are still hesitating, need to act quickly – “why would you sit back and allow this to happen?”

“These start-ups are going to spend months and millions making these group buying sites, it’s a trend that will keep ongoing through the rest of the year.”