Yesterday we covered Deal24, a company doing local discount coupon sales, similar to Groupon’s concept, in the Nordics and Baltics. Unfortunately for us, this wasn’t an Estonian company and certainly not the largest as our readers rightly commented both in Facebook and in the article comments. The real Groupon of Estonia is Cherry.ee which is the largest by both deals done and amount of business. This time we talked to the investors behind the company and there’s some interesting data to back this up.
So, cherry.ee is pretty much the same concept as Deal24 so there’s nothing new there. However, they have been able to attract a lot larger crowd around them. They have over 27 000 Facebook fans, which Andres Susi, an MTVP partner affiliated with the company, has stated. 27 000 fans equals to about 9% Facebook penetration in Estonia. Also, to add some cherry to the facts, they are the largest Facebook community in Estonia out of any companies.
So, how successful is cherry.ee then? Andres Susi came back to me with some figures. They have reached more than 300 000 euros of monthly revenues and they are currently at around 4 million euro annual rate. The company is clearly profitable and they’ve “saved” almost 1 million euros for users of cherry.ee in their purchases.
While Groupon bought CityDeal sometime back in Europe to begin their sales on this part of the pond as well, large national players like Cherry.ee are well positioned for further expansion of these big players. With such an established business already, it naturally makes them an interesting acquisition target.