In December, LivingSocial raised $183 million from Amazon.com and Lightspeed Venture Partners. Now the company is looking to raise an additional $500 million according to The Wall Street Journal. LivingSocial would use the funding to keep expanding and stay competitive with Groupon.
Both LivingSocial and Groupon have generated lots of cash in the U.S. and overseas. The two companies have acquired several companies within the last year. They generate revenue by offering deep discounts to products and services from local businesses. The local businesses split revenue 50-50 with the websites.
This past January Groupon raised $950 million in funding to expand their team, buy out companies, invest in technology, and cash out employees and early investors. LivingSocial is a 3 year old company that started off by developing Facebook applications. Today they are making $1 million per day in revenue on average and is expected to generate $500 million in revenue this year. LivingSocial has about 24 million subscribers and Groupon has about 50 million.