In a sign that it may be pushing off an IPO after Groupon’s lackluster performance, rival LivingSocial has raised $176 million in a new round of funding, according to a new SEC filing. Reports of the new funding first surfaced in the New York Times a few weeks ago. Bloomberg reports that the new round values the company at $6 billion.
While the SEC document does not name the investors, we’ve been able to independently confirm the round was led by JP Morgan, with existing investors Lightspeed Ventures and Amazon also participating. We’ve also heard that no existing shareholders or executives took money off the table (*cough* Groupon *cough*)
According to the SEC filing, Code Advisors (Quincy Smith’s boutique firm) and JP Morgan were both advisors and received $5.3 million in “finders fees.” Who needs IPO fees when there is plenty of private capital to go around? (Did JP Morgan just pay themselves? Funny how that works). This funding brings the total capital LivingSocial has raised to $808 million.
Groupon shares are trading at about $21, which is down from their first-day pop of $28, but back up from the lows of last week when they hit $15. The IPO window is still open, but seems like it could crash shut at any moment.
This fundraising will allow LivingSocial to keep expanding organically and through acquisitions without tapping the public markets. And this may be but the first tranche of a larger $400 million funding, which is the total offering amount (meaning LivingSocial can raise up to that amount in future tranches as part of this round).
LivingSocial is the social commerce leader behind LivingSocial Deals, a group buying program that invites people and their friends to save up to 90 percent each day at their favorite restaurants, spas, sporting events, hotels and other local attractions in major cities. LivingSocial has an extensive user base of more than 85 million, and is headquartered in Washington, D.C.