Groupon gobbles up mobile check-in app maker Pelago

Social commerce juggernaut Groupon has acquired Pelago, the iFund-backed developer behind the location-based mobile social networking application Whrrl. Financial details were not disclosed. Groupon confirmed the deal on its blog: "[Pelago's] obsession with real-world serendipitous discovery, or 'Anti-Search,' is core to Groupon's mission," writes founder and CEO Andrew Mason. "It's about discovering what you didn't know you didn't know, right in your own backyard."

The Whrrl application for iOS, Android and Blackberry smartphones enables users to join Societies--i.e., groups of like-minded people sharing similar interests, passions and brand affinities to exchange recommendations and experiences. The solution includes a Society Rewards program, which enables merchants to offer prizes and discounts when Whrrl users check in at their place of business. Pelago (named to FierceWireless' Fierce 15 list in 2008) racked up $22.4 million in venture funding and was an early recipient of Kleiner Perkins Caufield & Byers' iPhone-focused iFund; Pelago CEO Jeff Holden will now oversee Groupon product development, and, as a result, the Whrrl app will shut down on Apr. 30, 2011.

Each day, Groupon presents bargains from retailers and restaurants spanning across more than 500 international markets; the offer is good only if a predetermined number of consumers take advantage within a 24-hour period--if the user minimum is met, everyone who signed up is charged for their purchase and mailed a link to redeem their Groupon, and, if not, the deal is canceled. The startup encourages bargains that promote social interaction among users, like dining opportunities and spa treatments. According to Groupon, the service has saved shoppers close to $1.7 billion since launching in late 2008.

Groupon introduced an application optimized for Apple's (NASDAQ:AAPL) iPhone and iPod touch in March 2010, enabling consumers to purchase, redeem and organize deals on the go. In addition, users can log in via Facebook Connect and map local Groupons in real time via their smartphone's GPS feature. In December, Groupon partnered with location-based mobile media firm JiWire to roll out hyper-local offers targeting consumers based on their present whereabouts--two months later, Groupon signed with mobile commerce solutions provider ShopSavvy to deliver relevant deals to smartphone users.

For more:
- read this Groupon blog entry

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