Mertado operates a social-commerce platform that lets users discover and purchase lifestyle products directly on Facebook and other social destinations. The company launched Mertado TV, which syndicates lifestyle video content from networks like Food Network, Fine Living, and Better TV and links featured products to its catalog. In beta, Mertado reported that shoppers increased repeat purchase activity by 250% after viewing the integrated video content. Mertado TV is available on Mertado.com with additional rollouts planned, including a launch on Press Enterprise’s network. The startup has also built a virtual storefront that developers can integrate into social games so users can shop without leaving the app. To support expansion of Mertado TV and its commerce initiatives, the company recently closed new financing and added a board member. Mertado operates a Facebook application and a standalone website using Facebook Connect to surface personalized deal suggestions based on users' Facebook profiles and social graphs. The service regularly suggests a subset of daily deals it thinks each user will like; the founders say most deals are at least 50% off MSRP. Some deals can continue to drop in price as more people purchase them (all participants pay the lowest price), and Mertado does not use activation cutoffs like some group-buy sites. Viral features include a virtual currency called Mertado Cash that rewards users who suggest deals to friends; Mertado Cash can be applied toward future purchases though some deals limit the percentage that can be covered. The company handles credit-card transactions, customer service, and returns itself rather than acting solely as an aggregator. The article notes Mertado faces challenges around notification limits on Facebook (forcing reliance on email) and that its success will hinge on recommendation accuracy and users' willingness to share deals.

Total raised

$3M

Funding rounds

2

Latest round

Series A

Latest activity

Sep 2011