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Showing posts with label groupon.livingsocial. Show all posts
Showing posts with label groupon.livingsocial. Show all posts

June 3, 2011

The Road To Groupon's $750 million IPO :



Groupon just filed an S-1 with the SEC in order to raise $750 million in an IPO. In an upset, Morgan Stanley and not Goldman Sachs will lead the underwriting of the IPO.Here are the roads that led to The Groupon IPO

Headquarters: Chicago.

Employees: 7,107 as of March 31.

Members: 83 million.

Revenue: $713 million in 2010, but growing fast. It reported $644 million in revenue in just the first quarter of 2011.Profit: None yet. Groupon lost $117 million in the first quarter as it invested in growth, especially overseas.

 Groupon's Early Funding:  New Enterprise Associates. Eric Lefkofsky and Brad Keywell are investors in Groupon.
In April 2010, Groupon raised $135 million from Digital Sky Technologies, a Russian investment firm.On December 29, 2010, Groupon's executive board approved a change to Groupon's certificate of incorporation that would permit the company to raise $950 million in venture capital funding, based on a valuation of $6.4 billion.
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Groupon's Revenue Performance : Not something to boast about..From January 2010 through January 2011, Groupon’s U.S. monthly revenues grew from $11 million to $89 million. Total 2011 U.S. revenues were an estimated $460 million. In February 2011 monthly revenue dropped to $62 million. Groupon’s 2011 estimated revenues are in the $3 billion to $4 billion range
Groupon RevenueTrivia
  • Groupon lost $413 million in 2010.
  • 2010 revenues totaled $713 million.
  • Groupon's first quarter 2011 revenues reached $645 million.
  • Groupon's international business accounted for 37.2%, or $265 million, of the company's total revenues in 2010.
  • In 2010 and the first quarter of 2011, Groupon spent $241.5 million and $179.9 million, respectively, on online marketing initiatives relating to subscriber acquisition.



 
Competitors of Groupon:Worldwide, there are over 500 similar sites including over 100 in US However, by December 2010, only one competitor, named LivingSocial, has been described as a serious competitor; according to one estimate, it received an investment from Amazon of $175 million. Other notable firms operating in the market include Xferral, BuyWithMe, Plum district, Jasmere.com, Groop Swoop, TownHog, Gilt city Buywith me Tippr Juice in the city wegiveto get eWinWin.

Google, following its failure to purchase Groupon for $6 billion launched Google Offers In April 2011, Facebook begins testing social-buying program‎. Other Web heavyweights  and giants  including Facebook, Yelp, Travelzoo, OpenTable and the spurned suitor Google — are all adopting features similar to Groupon’s.


Groupon  Market Locations " Groupon serves many major geographic markets internationally including cites in the United States, Canada, Taiwan, Brazil, Germany, Greece, France, the Netherlands, Belgium, the United Kingdom, India, Israel, Italy, Portugal, Spain, Puerto Rico, Japan, Poland, Turkey, Mexico, Peru, Chile, Colombia, South Korea, Sweden, Argentina, the United Arab Emirates, Norway, Romania, Singapore, Malaysia, Hong Kong, Mainland China, and Russia.


In Australia, development of Groupon has been slow owing to legal disputes between Groupon and an Australian company, Scoopon. Groupon now operates in Australia as "Stardeals" while the legal problems are worked out.


On February 19, 2011 The Wall Street Journal reported that Groupon was preparing to launch in ChinaGroupon is also expanding into the MENA region with its launch of Groupon UAE on March 1, 2011.
Groupon New Zealand launched on 10th May 2011 in conjunction with local Facebook tourism