Total amount raised
$1.4 Billions
Latest funding date
12/1/2019
Location
Groupon has successfully raised significant funding through multiple rounds, attracting a diverse group of investors. The platform offers a wide range of deals and discounts across various categories, making it a popular choice for consumers looking to save on local and national services.
Keep reading to explore the intricacies of Groupon's fundraising journey and the investors backing this innovative platform.
What Is Groupon?
Groupon, founded in 2007 in Chicago, Illinois, is a deal-of-the-day website offering discounted gift certificates usable at local or national companies. The platform provides a vast marketplace of deals, allowing users to discover products, enjoy vacations, and find a curated selection of goods.
Founded by Andrew Mason, Bradley Keywell, Christopher Muhr, Eric Lefkofsky, Sebastian Schmidt, and Stephen George, Groupon has grown significantly since its inception. The company offers merchants customizable deal campaigns, credit card payment processing, and point-of-sale solutions.
With a workforce of 1001-5000 employees, Groupon continues to be a major player in the e-commerce space, providing consumers with a wide array of deals and discounts across various categories.
How Much Funding Has Groupon Raised?
- Angel Round
- Amount Raised: $1M
- Date: January 2007
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: Initial funding to launch the platform and develop the business model.
- Series A
- Amount Raised: $4.8M
- Date: January 2008
- Lead Investors: New Enterprise Associates
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand operations and increase market reach.
- Series B
- Amount Raised: $30M
- Date: December 2009
- Lead Investors: Accel
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale the business and enhance technological infrastructure.
- Series C
- Amount Raised: $135M
- Date: April 2010
- Lead Investors: DST Global
- Valuation at Round: $1.35 billion
- Motivation Behind the Round: To support rapid global expansion and provide liquidity for employees and early investors.
- Series D
- Amount Raised: $950M
- Date: January 2011
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To fuel further growth and market penetration.
- Venture Round
- Amount Raised: $16.2M
- Date: February 2011
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To continue expanding the platform and enhance service offerings.
- Post-IPO Equity
- Amount Raised: $250M
- Date: April 2016
- Lead Investors: Atairos
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To strengthen financial position and support strategic initiatives.
- Post-IPO Equity
- Amount Raised: Not publicly disclosed
- Date: December 2019
- Lead Investors: MIG Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To maintain operational stability and explore new growth opportunities.
Total Amount Raised: $1.387 billion. Current Valuation: Not publicly disclosed.
Key Investors
- MIG Capital
- Details: MIG Capital is a private investment firm based in Newport Beach, California. They focus on long-term investments in public and private companies.
- Investment Focus Areas: Technology, healthcare, consumer goods.
- Notable Investments: Not publicly disclosed.
- Atairos
- Details: Atairos is an independent strategic investment company focused on supporting growth-oriented businesses. They partner with management teams to provide capital and strategic support.
- Investment Focus Areas: Media, telecommunications, technology.
- Notable Investments: Comcast, Bowlero, Learfield IMG College.
- DST Global
- Details: DST Global is a leading global investment firm specializing in late-stage internet companies. Founded by Yuri Milner, DST has invested in some of the world's most prominent tech companies.
- Investment Focus Areas: Internet, social media, e-commerce.
- Notable Investments: Facebook, Alibaba, Spotify.
- Accel
- Details: Accel is a venture capital firm that partners with exceptional founders to build world-class businesses. They have a long history of successful investments in technology companies.
- Investment Focus Areas: Software, internet, consumer services.
- Notable Investments: Facebook, Slack, Dropbox.
- New Enterprise Associates
- Details: New Enterprise Associates (NEA) is one of the world's largest and most active venture capital firms. They invest in companies across all stages of growth.
- Investment Focus Areas: Healthcare, technology, energy.
- Notable Investments: Robinhood, Coursera, Cloudflare.
What's Next for Groupon?
Groupon's future looks promising with opportunities to expand into new cities and international markets. The company aims to leverage group buying and social media to offer local business discounts, potentially reaching 100 cities by the end of 2010. This expansion could significantly increase their market presence and customer base.
Future fundraising seems likely, given the recent $135 million investment round that valued the company at $1.35 billion. This financial backing will support Groupon's rapid global expansion and enhance its service offerings. However, challenges such as managing rapid growth and facing competition from other platforms remain. Ensuring service quality while scaling operations will be crucial for sustained success.
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