Cobone has been acquired by Tiger Global Management after months of speculation. The deal is predicted to be close to $40 million.
Tiger Global Management, LLC is a privately owned investment manager. The firm manages hedge and private equity funds. It invests in the public and private equity markets across the globe primarily the US, China, India, Southeast Asia, Latin America, and Eastern Europe. The firm also invests in fixed income markets of United States and hedge funds.
This was first reported on Techcrunch.
Furthermore Jabber Internet Group has completely exited Dubai-based Cobone, leaving it with additional capital to further its ambitions in the region. CEO, Paul Kenny, along with other key members of the management team, will remain with the company.
The Middle East’s ecommerce market is valued at $11 billion according to an article published in Arabian Business. GoNabit’s acquisition by LivingSocial in 2011 was seen by many as a great potential in the e-commerce sector but its exit last year raises questions and challenges for entrepreneurs that they must overcome.
Founded in 2010, Cobone.com claims to have 2 million subscribers and has saved customers over AED 240 million in the process last year. Samih Toukan, Chairman of Jabbar Internet Group, comments in a statement: “This deal represents the international recognition of a highly successful local business. With Paul Kenny, we created a company that lead the way in regional group buying, and took on global players on our own turf. While this deal represents a successful exit for the Jabbar Group, we have little doubt in Cobone’s commitment to the region and in Paul’s determination to continue excelling and leading his brainchild to new successes”.
Update – 10 Mar 2013 – 07:39 pm- Cobone has laid off some its staff and may shift its focus to travel deals