That decline is larger than the multichannel retailer’s overall 5.8% sales decline.
The daily deal site will invest the funds in international growth and technology.
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.