We reported the details last week here and here. But now it’s official. Chicago based Groupon has raised $135 million in a fourth round of financing. DST led the round, with participation from Battery Ventures. The valuation isn’t being announced, but we’ve confirmed it is in the $1.35 billion range from multiple sources close to the company.
We wrote an extensive overview of the company last year when they closed their last round of financing. Since that time the service has been extended to new cities – 54 total now offer a daily deal via Groupon. 4 million Groupons have now been sold, says the company.
Press release is below.
GROUPON RECEIVES $135 MILLION FROM DST AND BATTERY VENTURES
Investment to Support Rapid Growth of Social Commerce GloballyChicago / Moscow, April 19 2010 – Groupon, the leading social commerce site, today
announced that DST, a leading global Internet investment group, will lead an investment
round of $135 million in the Company. A portion of the investment will be used to fuel
Groupon’s global expansion, and the rest will be used to facilitate liquidity for employees and
early investors.DST comprises the majority of the investment, with participation from Battery Ventures,
which is also a new investor in Groupon.Groupon leverages group buying and social media to provide its millions of customers big
discounts on the best local businesses in more than 50 cities across the United States and in
Canada. To date, customers have purchased over four million Groupons on deals ranging
from spa treatments and golf outings to fine dining and skydiving and have collectively saved
over $150 million on these deals.“Our growth is a reflection of the positive impact Groupon is having on consumers and
businesses at a very early stage of the market development,” said Andrew Mason, founder
and CEO of Groupon. “We are very pleased and excited to welcome DST and Battery as
shareholders and we look forward to benefiting from their vast knowledge and experience of
the social media sector as we continue executing on our growth plans in North America and
globally.”“This investment underscores our view that social networking and community based activity
will drive, shape and define the web’s evolution in the years ahead,” said Yuri Milner, Chief
Executive of DST. “Groupon, with its strong management team, offering and vision, is
pioneering social commerce and is redefining the local advertising space. We look forward to
being long-term partners of a company that is on a path to becoming a global Internet
leader.”“We’ve followed the social commerce phenomenon for many years, and are thrilled to have
the chance to back such a visionary management team,” said Roger Lee, General Partner,
Battery Ventures. “They saw a massive opportunity very early, and have executed flawlessly
to define it and take the leadership position. We think there is a lot of runway ahead, and are
energized to support the team in their quest.”
Founded in November 2008, Groupon has been aggressively expanding to cities throughout
the United States, with plans to be in 100 cities by the end of 2010. Earlier today Groupon
announced that it has launched its service in Orlando, Fort Worth, Tucson and Toronto, its
first Canadian city.
* * * * *
About Groupon
Groupon, launched in November 2008 in Chicago, features a daily deal on the best stuff to do, eat,
see, and buy in more than 50 cities across the United States and in Canada, including Chicago,
Boston, New York City, San Francisco, Atlanta, Washington, D.C., and Toronto. Groupon uses
collective buying power to offer unbeatable prices and provide a win-win for businesses and
consumers. The social commerce service is a project of The Point (http://www.thepoint.com), an
online community launched in 2007 for organizing group action. Groupon plans to be in 100 cities by
the end of 2010. For more information, visit http://www.groupon.com.
To get Groupon’s daily free email for the best in your city, subscribe at http://www.groupon.com.
To learn more on how to become a featured business on Groupon, visithttp://www.grouponworks.com.
About DST
Digital Sky Technologies and DST Global (together “DST”), is the largest Internet Company in the
Russian-speaking and Eastern European markets and also one of the leading internet investment
groups globally to exclusively focus on internet related companies. DST is backed by leading Russian
and Western financial institutions and also holds stakes in Internet world leaders such as Facebook
and Zynga.
For more information, visit http://www.dst-global.com.About Battery Ventures
Since 1983, Battery has been investing in technology and innovation worldwide. The firm partners with
entrepreneurs and management teams across technology sectors, geographies, and stages of a
company’s life — from start-up and expansion financing to growth equity and buyouts. Battery has
supported many breakthrough companies around the world, including: Akamai Technologies (AKAM),
BladeLogic (acquired by BMC Software), LIFFE (acquired by EuroNext), MetroPCS (PCS), Infoseek
(SEEK), and Omniture (OMTR). Its portfolio of Internet and Digital Media companies today includes:
Angie’s List, Bazaarvoice, BlueKai, Exact Target, FreeWheel Media, Lotame and TrialPay. Battery
currently manages $4B in committed capital, including its current $750M fund, and invests from offices
in Boston, Silicon Valley and Israel. For more information, visit http://www.battery.com.
Groupon features a daily deal on the best stuff to do, see, eat, and buy in more than 565 cities around the world. By promising businesses a minimum number of customers, Groupon can offer deals that aren’t available elsewhere. Groupon brings buyers and sellers together in a fun and collaborative way that offers the consumer an unbeatable deal, and businesses a large number of new customers. To date, it has saved consumers more than $300 million and claims it...
Digital Sky Technologies is a growth focused investment company specializing in late-stage, high-growth, private companies in the global Internet industry. The company has pioneered a model to provide liquidity to founders, employees and early investors through mixed primary and secondary transactions. These transactions are often referred to as DST type deals in the Internet world. The company was founded by Yuri Milner, and after building Mail.ru Group, DST gained international prominence through its investments in Facebook, Zynga and Groupon.
Battery Ventures is a venture capital firm with offices in Boston, Silicon Valley, Israel. They invest in technology driven companies.
Sponsored Ads
Sponsored Ads
Sponsored Ads
