MadBid.com, one of the fastest growing penny auction sites has secured £4 million in Series A funding from Atomico Ventures.
Launched in 2008, MadBid is one of a number of sites such as Swoopo which have appeared in the last couple of years.
CEO Juha Koski says the Atomico investment will be spent on technology and expanding in Europe.
MadBid is claiming 1 million users since launch and says customers are attracted by brand products with the possibility of
saving of 80% on the RRP of an item.
In addition to their e-commerce focus, penny auction sites describe themselves as entertainment companies.
The business model can therefore be quite profitable, MadBid states that it has generated over £2.5million
in the first year of operation, it has sold over £5million worth of products with 80,000 auctions being won.
Turnover is projected to reach over £20 million by the end of 2012.
Atomico venture capitalists founder Niklas Zennström, one of the cofounders of Skype, says MadBid “allows the most skillful to get amazing bargains”
and it had gained a lot of traction “in a short period of time.”
MadBid has 22 employees and is based in the UK.
[ Visit MadBid Penny Auctions ]
Posted: Tues August 24 13:02 GMT