Groupon is a daily deals service that has about 20 million subscribers. The company is currently seeking funding that would give them a $3 billion valuation. The funding would help them expand beyond the 230 markets that they currently operate in. Groupon plans to be available in 300 markets by the end of the year.
The idea behind Groupon is that they send out daily coupons in the form of an e-mail. If enough customers agree to the coupon deal, then everyone gets the discount. If there isn’t enough customers, then the deal does not apply. The coupons are generally from restaurants, nail salons, massage parlors, coffee shops, etc.
?I wouldn?t be surprised if Groupon raised a large round of financing or might possibly be acquired in the upcoming months,? stated Matrix Partners general partner Nick Beim in an interview with BusinessWeek. In Groupon’s last round of funding, they were given a $1.3 billion valuation.