Slyce Snatches Coupon App SnipSnap for $6.5 Million

Visual search provider Slyce, which offers out its proprietary technology to other mobile apps, has announced that it will acquire crowd source-based coupon app SnipSnap for $6.5 million in cash and stock, as well as its enterprise product line, according to TechCrunch. 

SnipSnap was originally founded in 2012 as a one-stop stop for coupons at major retailers and restaurants, but was different in that it crowd-sourced its coupon database rather than using an aggregating software. Users would take pictures of coupons with their smartphone cameras to send into the app for text and visual recognition before becoming user-available. The coupons are then stored on the app and can be accessed with a simple search function. So far, over 100 million coupons have been compiled, saving users over $200 million.

Aside from the direct to consumer coupons, SnipSnap also has an enterprise line where retailers like Bed Bath & Beyond, Rite Aid, and Toys R Us could create its coupons for distribution on its website, apps, emails, and SMS communications. While still a new feature, it has already generated half of all revenue for the company, which is increasing 25 percent month-over-month, and is the biggest growth area, according to CEO Ted Mann in TechCrunch. 

Despite the company’s profitability though, a stronger cash flow was required in order to keep growing, or finding a partner company. For Mann, Slyce’s visual search features made them the most logical choice for a partnership, especially as Slyce has moved into mergers and acquisitions to strengthen its own brand. According to Slyce CEO Mark Elfenbein, SnipSnap was a great deal for a company at “critical mass.”

“There aren’t too many apps out there that you can acquire for that kind of a deal, with that name brand, (and) consumer awareness,” Elfenbein remarked.

This will be Slyce’s fourth acquisition so far in an attempt to grow its buyer-to-consumer portfolio, like last year’s acquisition of mobile shopping app Pounce.