4th June 2012. Member-only online shopping club Ozsale.com.au has announced the acquisition of flash sale competitor buyinvite.com.au, on undisclosed terms as it prepares for the next stage of growth across South East Asia.
OzSale, now the APAC Sale Group, received A$14.5m from US investment firm Insight Ventures in August 2010 and acquired Buyinvite.com.au . Insight Venture Partners is famous for investing US$100 million in Twitter.
Other APAC Sale Group websites include nzsale.co.nz in New Zealand, singsale.com.sg in Singapore and mysale.my in Malaysia.
Founded by Ben Hollenstein in 2008, Buyinvite is an online sales events club, where members search for designer brands – across clothing, shoes and electronics – at discounted prices. Hollenstein said the company had been in discussions with OzSale for six months before the purchase.
OzSale was founded in January 2007 by Jamie Jackson and sells heavily discounted, designer-label clothing (usually imported) through short “flash” sales that last for three or four days. Brands offered by Ozsale have included DKNY, Zara, Alex Perry, Guess, Ksubi, Levi’s, Adidas, Nike and Kenneth Cole.
Ozsale has reported revenues 96 per cent ahead of last year, with 1.9 million customers joining the platform this year alone. It receives over 8 millions hits per month with a product sold every 5 seconds. Growing into a multi-national operation, the group now employs in excess of 250 staff and sells a product every five seconds via its websites across five countries.
In November 2011, Ozsale moved warehouse to a fully automated 17,000 square metre facility and appointed a head of international wholesale. The firm also pushed into Thailand and Malaysia and extended its buying team in the US and Europe.
Ozsale founder and chairman Jamie Jackson advised the purchase of BuyInvite would cement its position as the most-trafficked apparel etailer in Australia and New Zealand. He said It wa a crucial stepping stone as they “begin their aggressive expansion into the South East Asian markets”. Adding that the acquisition of BuyInvite will give the company a combined database greater than five million members.
“We’re pushing for overseas markets – South East Asia, the Philippines, Korea and the Indonesian markets,” Jackson said. “Korea we’re hoping to have in the next two months, and the same with the Philippines. Malaysia is already open and Thailand is going very well. Indonesia is also in discussions.”
“We also just signed a deal in China – we’re going to be supplying and also taking products form a very large site in China.”
“Buying Buyinvite locks us in to dominate the Australia and New Zealand landscape. We are now way out in front in number one position in this local environment.”
Jackson will not disclose the price paid for Buyinvite. He says OzSale now owns the company “100%” and will retain Buyinvite’s staff and management team.
“Buyinvite will run as a separate site. It won’t change at all. The branding will stay the same,” said Jackson. “The buying teams won’t change. The management team won’t change, but Ben will come on the board of OzSale.”