Groupon Inc (GRPN) leads investment in ClubLocal
Groupon Inc (NASDAQ:GRPN) was the lead investor in ClubLocal, a service that makes it simple to book and buy household services. ClubLocal received $10.7 million in total funding. Other individual investors and the two original founders of ReachLocal participated in this round of funding as well.
This round of financing consisted of an initial $7.5 million in funding with an option for Groupon to contribute $3.2 million within the next year. ClubLocal completed over 11,000 home repair jobs since launching in August 2012 across over a dozen different home service categories and recently expanded its offerings from Dallas to San Francisco. The funding will be used to expand their geographic footprint and network of independent professional service providers. It will also be used to accelerate the introduction of innovative features through their online and mobile booking platform.
“The shift to the online booking and buying of home services is a huge market opportunity that we are proud to be pioneering,” stated ClubLocal CEO Zorik Gordon. “We are extremely excited to have the experience of our investor group as we move to the next phase of our company, in particular the strong consumer presence that Groupon brings to ClubLocal. We believe that this round of financing firmly positions us as a well-funded, independent company that can more aggressively pursue this huge market opportunity.”