Today, Indonesian price comparison PriceArea 1 site confirmed that it has been acquired by Seoul-based Yello Mobile for an undisclosed sum. The announcement comes after a wave of rumors surrounding a potential purchase of the startup.
Korea-based Yello Mobile will take a majority stake in PriceArea. A source familiar with the deal tells Tech in Asia that the acquisition sum is at seven-figures in US dollars, but PriceArea and its investors GREE Ventures and East Ventures declined to confirm or reveal the exact figure when asked.
Yello Mobile describes itself as a mobile media company with over 20 mobile and internet services throughout Asia Pacific. Founded in 2012 by Sang-Hyuk Lee, an ex-Daum executive, the company claims to have over 10 million monthly active users across its many apps and services. The acquisition of PriceArea catapults Yello Mobile into Indonesia and potentially Southeast Asia.
“Yello Mobile sees great potential in PriceArea in terms of its user base and business model. This marks the first step in our expansion into Southeast Asia, which reflects our strategic priorities to accelerate growth and diversify our activities through mergers and acquisitions of startups across countries in the region,” says Hugo Choi, chief international operations at Yello Mobile in a statement.
PriceArea has over 1.4 million monthly visits and just started generating revenue this year, but it remains unprofitable. Last year, the site received over 12 million visits. When asked about PriceArea’s future, founder and CEO Andry Suhaili says that it will focus on mobile and regional. “Through mobile, PriceArea can fully leverage its services and [generate] revenues,” says Suhaili.
Suhaili studied computer science and computer animation from The Art Institute of California, Los Angeles. He released the beta version of PriceArea in July 2010. In a 2011 interview, Suhaili told us that PriceArea is the “first price and product comparison website in Indonesia.” Prior to founding the startup, Suhaili ran his own advertising firm for seven years.
PriceArea claims to be the largest price comparison site in Indonesia based on web traffic. Its biggest competitors in the country include Telunjuk and also Rocket Internet’s PricePanda. Other up-and-coming price comparison sites include Kakaku’s PricePrice and Thailand headquartered Priceza which recently expanded to Indonesia.