Facebook buys startup aimed at loyal shoppers

Apr 14, 2012

Facebook on Friday confirmed that it bought a San Francisco startup that helps merchants court shoppers with rewards for checking in with smartphones during visits.

Facebook's acquisition of Tagtile for an undisclosed sum came on the heels of a billion-dollar deal to acquire the startup behind wildly popular photo sharing application Instagram.

"We're happy to confirm that Tagtile's founders are joining , and that Facebook is acquiring substantially all of the company's assets," the world's leading social network said in reply to an AFP inquiry.

"We've admired the engineering team's efforts for some time now."

Tagtile was created by former VMware engineer Abheek Anand and one-time engineer Soham Mazumdar.

The entrepreneurs created a system that lets customers use iPhones or Android-powered smartphones to check in at shops and get rewarded with discounts, coupons or loyalty points.

To check in, customers need only to tap smartphones on small white cubes that swap information with handsets using sensors.

"We started Tagtile with a simple goal -- to help local business owners build better relationships with their best customers," the founders said in a post at the company's website.

"We are happy to announce that we are joining Facebook," they continued. "It is an opportunity for us to take our goal and do it on a much bigger scale than we could have on our own."

Facebook has been building its and capabilities as lifestyles increasingly revolved around smartphones and .

More than 10 million Instagram applications tuned to Apple or Android-powered gadgets have been downloaded since the acquisition by Facebook was announced on Monday, raising the total number of users to about 40 million.

Facebook in February filed for a stock offering and could raise as much as $10 billion in the largest flotation ever by an on Wall Street.

Facebook -- the leading social network in all but six countries, notably China and Russia -- claims more than 845 million users.

Facebook's value has been estimated at between $75 billion and $100 billion.

Explore further: Dating app Tinder premium plan aims at under-30 crowd (Update)

add to favorites email to friend print save as pdf

Related Stories

Beluga gives way to Facebook Messenger

Oct 29, 2011

Facebook is ushering out freshly acquired Beluga text messaging service to clear the way for a replacement tailored for the social network.

Recommended for you

Twitter working with probe on online threats

19 hours ago

Twitter said Monday it was working with law enforcement officials on unspecified threats, amid reports that the social network had been targeted for blocking accounts linked to the Islamic State.

IOC defends Rio legacy amid green protests

Mar 01, 2015

Ecological protests on Saturday dogged the final day of an International Olympic Committee executive board meeting in Rio as green campaigners slated the choice of a nature reserve to hold the golf event ...

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.