January 10, 2011, 4:45 PM

Groupon closes its $950 million funding round

The daily deal site will invest the funds in international growth and technology.

Zak Stambor

Managing Editor

Lead Photo

Groupon Inc. today announced it has raised $950 million in its seventh round of funding.

Last month the daily deal site submitted a filing with the state of Delaware, where the company is incorporated, that said it intended to sell more than 30 million shares at $31.59 each. That price would value Groupon at $6.4 billion, according to VC Experts, a research firm that analyzes the value of private companies. Groupon declined to comment on its current valuation.        

The announcement comes a little more than a month after the daily deal site reportedly rejected an offer from Google Inc. to buy Groupon at a price that some say may have been as high as $6 billion. The investment round includes new investors such as Silicon Valley venture capital firms Kleiner Perkins Caufield & Byers and Andreessen Horowitz.

“We’re thrilled that Groupon has earned the confidence of some of the world’s most respected investment firms,” says Andrew Mason, founder and CEO of Groupon. “With their support, we will continue on our mission to change the way people shop locally and serve the world’s local businesses.”

The daily deal site says it plans to use the funds to continue expanding globally and investing in technology—two areas that analysts such as Lou Kerner, vice president equity research at Wedbush Securities, say are crucial to Groupon site retaining its place as the leading daily deal site.

Last year Groupon gained traction with an aggressive international expansion strategy centered largely on acquiring companies that already had established roots. The buying spree turned Groupon from a company that operated solely in the United States to one with operations in 35 countries, including majority stakes in Japanese and Russian sites.

Groupon says it grew its subscriber base by 2,500% last year, from 2 million subscribers to more than 50 million.

 

Comments

Sign In to Make a Comment

Comments are moderated by Internet Retailer and can be removed.

Not a member? Signup for free today!

Advertisement

Advertisement

Advertisement

Relevant Commentary

FPO

Jason Squardo / Mobile Commerce

Five tips for achieving high mobile search rankings

Searches on mobile devices will soon exceed those on computers, Google says. Retailers that keep ...

FPO

Sergio Pereira / B2B E-Commerce

Quill turns to its B2B customers for new ideas

Coming in April is a new section of Quill.com that will let customers and Quill ...

Advertisement