Flying high with cash and confidence after snubbing Google’s reported $6 billion purchase offer, daily deals company Groupon has set its sights on raising nearly $1 billion in private funds.
Should the financing go through with all shares issued, Groupon’s valuation could be as high as $7.8 billion, according to financial website VC Experts. Groupon recently hit a whopping $2 billion run-rate in gross merchandise sales, which probably means between $500 million and $1 billion in revenue. This makes Groupon one of the fastest, if not the fastest growing company in history, as it was only launched roughly two years ago.
The move comes at a critical and busy time in the developing e-commerce and local advertising space. Around the same time Groupon rejected a buyout offer from Google, the company bought local marketing company Ludic Labs and began its international expansion, launching Groupon Hong Kong, Groupon Singapore, Groupon Philippines and Groupon Taiwan via the acquisition of three daily deal sites.
While Google acquisition rumors were still swirling, Groupon’s main competitor LivingSocial secured a $175 million financing led by Amazon.
Lizette Chapman, WSJ