Groupon Inc. has successfully established itself in three more countries, including India, Israel and South Africa, by acquiring local discount coupon sites in these countries. It has acquired SoSasta, Grouper and Twangoo in their respective countries. Although the terms of deal are not disclosed, the deal will give Groupon access to emerging markets and get quick growth.
Another announcement by the company informed that it has managed to raise a whopping amount of $950 million from investors including Mail.ru Group and venture-capital firm Andreessen Horowitz. The official amount was revealed weeks after it turned down an acquisition offer from Google worth as much as $6 billion. This is the biggest deal done by Groupon so far and has set quite a precedent for the industry as a whole.
Investment Bank, Allen & Co. is helping the company to raise the money and hence will be paid a $75 million finder’s fee for its contributions. Money raised by this funding will be utilized by Groupon for its expansion as well as to enrich its current shareholders. This funding has helped Groupon to increase its value to approximately $7.8 Billion.
Turning down of acquisition offer from Google has brought several good things for Groupon, such as its raised $500M in funding out of the total $950M by selling an equity stake right after it rejected the offer. Its decision is not only by the critics but Tamas as well, Russian billionaire and major investor of Facebook, Twitter, Zynga, and Groupon.