Catch of the Day pioneered the daily deal concept in Australia and it proved itself to be a win-win business model. Founders Gabby and Hezi Leibovich founded the business in 2006 and soon followed this with Scoopon it’s highly successful sister site that provides group buying deals on services and experiences.
This month an investment consortium including Tiger Global Management, James Packer’s Consolidated Holdings, Andrew Bassat of Seek and Glenn Poswell of Gannet Capital, bought into the business setting a market valuation of $200 million for the group.
The group have identified the team as leaders in the sector with a proven track record of ecommerce success. The investment will enable the Leibovich brothers to build upon the group’s leadership position in the Australian daily deals sector with money to support new technology investments, acquire similar-minded internet startups and run media and advertising campaigns to make both household names.
When I spoke with Gabby today one of the biggest and most important parts of the deal for him was around Company Culture. “We still remain majority shareholders and our company culture is very important to the success of what we do. We started out the company with a team of five people, we now have 120 – we will probably need to double this over the next 12 months.”
Gabby also said that there will be a total of 5 deal sites operating by the end of the year with the introduction of www.groceryrun.com.au and www.brandstreet.com.au to the portfolio they will be expanding into the grocery and fashion markets with the same daily deal concept. And with all of this going on they will be moving premises very soon to accommodate for the growth – a warehouse three times the current size will be needed.
And who is Gabby’s business idol you may ask? – He says Richard Branson is, as he admire’s the fact that in everything he does he is himself and makes no exceptions.