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CASE STUDY
Groupon, a global e-commerce marketplace for deals and coupons

Using collective buying power to offer unbeatable prices, Groupon features a daily deal on the best things to do, eat, see, and buy in cities around the world.

Background:

Having identified “group buying” early on as one of the breakout categories in new e-commerce models, Battery evaluated a set of emerging firms and pinpointed Groupon as having the highest potential in the sector. For more than a year before investing, Battery engaged with the Groupon team. Then, in early 2010, Battery invested in a $135 million financing round to build out the company’s engineering and sales teams and expand Groupon’s footprint into new geographies.

Battery’s Impact:

  • In 2011, Battery continued backing the company as part of a $1 billion fundraising round, raised to facilitate further expansion and acquisitions.
  • Battery supported the Groupon team through massive and rapid global growth.
  • Identifying acquisition opportunities, Battery also assisted Groupon through those acquisitions and subsequent integrations.
  • With the goal of driving company growth, the Battery team recruited additional management to support Groupon’s founders.

Outcome:

By October 2010 Groupon had over 35 million registered users. In 2011, Groupon executed the largest IPO by an Internet company (at that time) since Google’s 2004 IPO. NASDAQ: GRPN, November 2011.

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The presented case study investment was made in particular economic and market conditions. There can be no assurance that Battery Venture would elect, or be able, to exploit similar opportunities in a similar manner under similar or different economic and market conditions. More generally, there can be no assurances that the Battery vehicles will have comparable investment opportunities in the future. No assumptions should be made that any investments identified above were profitable. It should not be assumed that recommendations made in the future will be profitable or comparable to the portfolio company described in this case study. For a full list of all Battery Ventures investments, please click here.

Details
Focus area
Consumer
INVESTED
2010
STATUS
NASDAQ: GRPN
Location
Chicago, Illinois
STAGE
Growth
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