Wednesday, April 06, 2011

$400 Million Raised by LivingSocial

LivingSocialIt had previously been rumored that daily deals platform LivingSocial, which recently landed a $175 million investment from Amazon back in December, was going to complete a $400 million round of funding. Well, those rumors have come true. LivingSocial has declined to name the sources of their funds and have only stated that they came from a mix of public and private investors both new and existing. LivingSocial does plan to use cash to carry on their aggressive domestic and international growth. They will also use cash to continue their product innovation according to a statement from LivingSocial. LivingSocial also announced that they have over 26 million members and that former CBS Interactive President Neil Ashe is joining their board of directors. This new $400 million in funding raises LivingSocial's value to over $2 billion. LivingSocial had previously disclosed that, as of December, their deals were bringing in over $1 million per day in gross sales. LivingSocial also expects to generate $500 million in revenue for 2011. LivingSocial has raised $632 million to date. LivingSocial's main rival, Groupon, raised $950 million in a Series D round of funding in January, barely a month after they rejected a $6 billion acquisition offer from Google. Groupon has raised $1.1 billion so far. Both LivingSocial and Groupon offer discounts on local businesses, like salons and restaurants, daily via the internet, email and a host of mobile applications. Source: Mashable - LivingSocial Raises $400 Million

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