Teambuy raises $7 million, Sales are strong

Toronto’s TeamBuy.ca has been on a tear over the past 6 months. (see their sales numbers for the past 3 months at the end of this post). They have launched a site redesign, a new Travel service and we have noticed their sales increasing quickly, essentially becoming one of the top sites across the country.

They just announced that they have raised $7 Million from an undisclosed institutional investor. By our count that is the 2nd largest investment in an independent Daily Deal site in Canada. Dealfind announced receiving $31 million back in May of 2011.

Based on statement by Ghassan Halazon, CEO of Teambuy.ca, they will be using the funds for “expansion plan into several more Canadian cities and help us branch into new and exciting business avenues that go above and beyond daily deals.”  He also added a rather important piece of information; As opposed to expanding to other countries, they have decided to stay with Canada and broaden their product and customer base locally. That is a big deal and we applaud them for that strategy. All too often successful Canadian companies move rather quickly to the land of plenty that is the USA. Many don’t continue to cement their leadership position in Canada. so kudos to Teambuy for doing so.

So what other products will Teambuy launch for the Canadian customer? Well, “daily deals” is simply a part of something a lot bigger; and that is local commerce. With the new funding, Teambuy can invest in pursuing the “ambitious goal” of connecting local merchants and consumers within a local commerce framework, while Teambuy makes a % of each sale. Perhaps they can achieve what the Yellow Pages has not been able to accomplish in this country as of yet, and that’s deliver a local commerce engine that is incredibly affordable and effective for merchants and, at the same time, truly appealing for consumers to use. The goal is ambitious, but $7 million, and subsequent rounds, in funding helps.

TeamBuy.ca was founded in 2009, making it the first Daily Deal site in Canada. Launching way before Groupon did in this country. They state having 100+ employees and nearly a million members.

In terms of sales, based on our sources, their May, June and July have shaped up to be as follows:

May = Around $1.5 million (give or take)

June = Around $2 million (give or take)

July = Around $2.5 million (giver or take)

These are very strong numbers across the country……for a country like Canada. Their direct competition is Groupon, Wagjag, Dealfind and Living Social. Based on Teambuy numbers over the past 4 months, they have quickly become the #4 player in the country over taking Living Social. Groupon being number 1 and  Wagjag #2 are way out in front, Dealfind is #3, then Teambuy at #4, then Living Social at #5. However, regional leaders differ from province to province and we’ll supply those numbers on another post.

Congrats to Teambuy, it shows that they love supplying deals to Canadian across the country.

2 Comments
  1. Congrats Teambuy! Keep up the great work!