Groupon operates a high-profile daily-deals site that aggregates local offers and promotions. The company has been actively expanding via acquisitions and senior hires, including the purchase of Pelago (creator of Whrrl) and hiring Google VP Margo Georgiadis and Amazon’s Jason Child as CFO. Management and board moves — including new board member Howard Schultz — appear aimed at building experienced leadership and subsidiary capabilities. Groupon has been raising large sums to support growth and strategic deals and to position itself for an eventual IPO. As of the article, the company has raised $1.146 billion to date, including a $950 million round in January and a $16.2 million round earlier. The recent activity signals a continued focus on consolidation and investor readiness rather than changes to the core daily-deals product. Groupon operates a daily deals site that sells local discounts and offers to consumers. The company filed an SEC form reporting an additional $16.2 million raised. Including this amount, Groupon has raised over $1.13 billion to date and had earlier reported a recent $950 million round. The filing does not disclose the financing structure or whether the $16.2M is an add-on to the prior round. Listed on the form are board members Eric Lefosky, Brad Keywell and Kevin Efrusy, among others. Groupon recently added Starbucks founder Howard Schultz to its board; TechCrunch reports Schultz made an undisclosed investment that coincides with an asset sale dated Feb. 10. The article also notes Groupon reportedly turned down an acquisition offer from Google, and CEO Andrew Mason declined to comment on the filing. Groupon is in the process of closing a substantial $950 million funding round at a reported $4.75 billion valuation. The company has already closed roughly half of that sum — around $500 million — from investors DST, Fidelity and Morgan Stanley. Multiple sources indicate that Kleiner Perkins is on the verge of participating in the round as well. It is unclear when the remainder of the round will close or who the other participants will be. The fundraising follows Groupon walking away from an acquisition offer from Google. The article highlights Kleiner Perkins' recent aggressive investment activity in Silicon Valley, including a $150 million slice of Twitter’s recent $200 million round, a doubling down on its iFund, and a $250 million bet on social via its sFund. Groupon is a daily-deal social commerce service launched in November 2008 in Chicago. The site leverages collective buying power and social media to offer steep discounts on local experiences and goods. As of the articles, Groupon operates in roughly 54 cities across the U.S. and Canada and has sold over 4 million Groupons, with customers collectively saving more than $150 million. The company announced recent launches including Orlando, Fort Worth, Tucson and its first Canadian city, Toronto, and plans to be in 100 cities by the end of 2010. Management says the business is fueling rapid growth and pursuing global expansion of its social commerce offering. Groupon is a Chicago-based company that offers deep discounts on products and services from local businesses through deals that only activate after a minimum number of users sign up. The platform encourages viral sharing via Facebook, Twitter and email to reach activation thresholds. The company reported it was on track to generate $100 million in gross merchandise sales in 2010 and typically takes a 30%–50% cut of those sales. A recent financing round was described as very competitive, reflecting strong investor demand. Observers characterize Groupon as a compelling local advertising platform that generates significant cash.

Total raised

$1.1B

Funding rounds

5

Latest round

Equity

Latest activity

Apr 2011