Now we’re going to see if some of the smaller local deals services can make a real business while the giants — Groupon and LivingSocial — dominate the industry.Scoutmob, an Atlanta-based deals startup with a great vibe and product design, just announced it’s expanding to 10 more U.S. cities today.
And that it has raised $1.5 million in financing from New Atlantic Ventures. The company plans to triple its headcount this year.
Scoutmob tries to differentiate itself by playing up its mobile presence, with deals delivered to mobile devices and instantly redeemable. But Groupon is going big on mobile with its forthcoming “Groupon Now” service, and we expect plenty of competition here from the likes of Facebook, Google, Foursquare, Loopt, etc.
So this will be a good indicator of how big the local deals market can ultimately get, and whether it can sufficiently support smaller players like Scoutmob, which boasts half a million users.
Scoutmob’s new cities include: Austin, Boston, Chicago, Dallas, Denver, L.A., Nashville, Portland, Seattle, and Washington, D.C.
Don’t miss: Here’s Why The New Kindle Isn’t Free