In: Economics
Groupon was the pioneer in local commerce category as it deals in daily sales. It was launched in 2008 and did its IPO in 2011, it was worth more than $6 billion.
When the company was founded it was just an idea and $1 million was invested by the ousted CEOs employer. After a year and half when it was launched in 2008 it was valued at $ 1 billion. In 2010, it was valued at $1.35 billion. In April 2010, the company raised $135 million from digital sky technologies. In December, 2010 venture capital fund invested $ 950 million valuing the company at $6.4 billion. The company went public in 2011 and raised $ 700 million.
Groupon has not been a success as Groupons worth has been stagnant, it is worth half of its IPO valuation and it's stock is flat. Even though revenue has been growing, it has registered a net loss ever since it has gone public. It has a bad business model which needs to change.