APN News & Media has continued its start-up investment spree by taking a sizeable stake in MyTeamDeals, a group buying platform for sporting clubs that was only launched at the start of the year.
Details of the deal weren’t disclosed other than APN has the right to acquire up to 50% of Sydney-based MyTeamDeals.
The investment follows hot on the heels of APN splashing out a massive $36 million for 82% of three-year-old online shopping club brandsExclusive last week.
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MyTeamDeals works by enabling sports club sponsors and local merchants to promote relevant deals to fans of the team.
It claims to be slightly different from other group buying sites by timing deals in consultation with clubs’ communications activities, rather than as daily deals.
The business already has exclusive deals with NRL teams Wests Tigers, Manly Sea Eagles, Sydney Roosters and Cronulla. It will use the back-end functionality of GrabOne, an APN-owned business that has 70% market share in New Zealand.
MyTeamDeals was founded by entrepreneurs Mark Forrest and Roland Cagé, launching earlier this year. The business has six staff.
“APN look for entrepreneurial partners and we see the opportunity to work with them and reach out to a wider base of partners,” Forrest, the CEO, tells StartupSmart. “We’ll look to take on one new club a month. We’re happy to talk to clubs in netball, cricket or AFL – anyone, in fact, with an engaged local community.”
“We showed to APN that we have a good business model, an evidenced revenue stream and that we provide value.”
“There’s been huge growth in the group buying market, but we think there’s a great opportunity for us at a local level with a focus on loyal customers.”
Matt Crockett, chief development officer at APN, said in a statement: “This deal is a good example of our strategy to secure and build leading transactional platform businesses like GrabOne, CC Media and brandsExclusive, and then to partner with emerging niche businesses, such as MyTeamDeals, that get value from and add value to those platforms.”