Chicago based, U.S. consumer web company, Groupon has raised $135 million in a fourth round of financing from the Russian firm Digital Sky Technologies. DST led the round, with participation from Battery Ventures, valuing it at more than $1 billion. Groupon features a daily deal on the best stuff to do, see, eat, and buy in a variety of cities across the United States. Groupon is profitable and has 270 employees.
GROUPON RECEIVES $135 MILLION FROM DST AND BATTERY VENTURES
Investment to Support Rapid Growth of Social Commerce Globally
Chicago / 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.
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 ), an online community launched in 2007 for organizing group action. Groupon plans to be in 100 cities by the end of 2010.
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.
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
Latest posts by Amarendra Bhushan (see all)
- The World’s Top 20 Most Valuable Brands For 2015 - October 5, 2015
- What non-tech recruiters need to look for when seeking the right tech talent - October 1, 2015
- 25 Most Inspiring And Thought-Provoking Quotes by Steve Jobs - September 29, 2015