Hyperlocal Deals Company Plum District Buys Spotivate
Plum District is an online local commerce company that is tailored towards moms. The company has acquired Spotivate. Spotivate is a startup that was founded by Anthony Lee and Jorge Chang that was launched out of the AngelPad incubator. The terms of the acquisition was undisclosed.
Plum District was founded in 2009 by Megan Gardner. Plum District makes it possible for local moms to join as a regional sales force. They will be able to source the deals in their neighborhood for the website.
Plum District raised around $30.6 million in funding from Kleiner Perkins and General Catalyst over the last few years. The company previously acquired DoodleDeals Inc. and Chatterfly in 2011.
Around the time that Plum District laid off several people in August 2012, founder and CEO Megan Gardner stepped down from her position. Susan Kim became the head of the company after that.
This is Kim’s first acquisition as the leader of the company. The acquisition will enable Plum District to sell activities like summer camps and music lessons. Before the acquisition took place, Plum District and Spotivate were partners. Spotivate content was distributed through Plum District’s network. Plum District sees an open rate of e-mails increase 50% and their click-through rate (CTR) double.
Spotivate received several offers, some of them providing an option to keep Spotivate open for business. Plum District felt like the best fit for the company though. Lee (VP of Product) and Chang (VP of Engineering) are going to join Plum District.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry