Catch of the Day wins Packer, Seek backing

Renai LeMay
Monday, 23 May 2011 10:38

IT Industry - Strategy

In a statement today confirming the finalisation of talks between the various parties, Catch of the Day said the list of investors included Packer's Consolidated Press Holdings, Seek co-founder and chief executive Andrew Bassat, Glenn Poswell (the founder of Sydney-based asset management company Gannet Capital) and hedge fund Tiger Global Management.

CatchOfTheDay founders and brothers Gabby and Hezi Leibovich (pictured) will retain a controlling stake in the company, with the $200 million valuation making it likely the consortium has invested tens of millions of dollars in their business.

Gabby Leibovich said the consortium possessed 'a true passion for the internet'. 'Through our relationships with them we are able to access a wealth of advice, experience, and extensive contacts - both local and international - to propel our business forward. We look forward to working with them,' he said.

The entrepreneur said despite the recent high levels of growth in the daily deals sector in which CatchOfTheDay and Scoopon operate, Australia's online retailing industry was still 'in its infancy' when compared to that of other markets, which is one reason why the company considered investment from international partners. Tiger is based in New York but has international offices in locations such as China.

Tiger managing director Lee Fixel said it was apparent that the brother entrepreneurs had a 'deep understanding' of their market and what would be required to build a globally competitive e-commerce group.