Groupon is buying its way into new sectors — and more revenue.
The company, which pulled in $595 million in its last quarter, announced today that it has acquired Ideeli, a New York City-based fashion flash sales site.
Ideeli, which Groupon is buying for $43 million, has raised over $100 million since 2007, making the Groupon acquisition a big loss for investors like StarVest and Kodiak.
The Ideeli acquisition is just the latest entry in a string of acquisitions for Groupon, whose revenue has been more or less flat year-over-year. Recent buys include Blink (a European last-minute travel deals site) and Ticket Monster, a Korean e-commerce company formerly owned by Groupon rival LivingSocial.
The company’s acquisition comes even as e-commerce companies like Fab are distancing themselves from flash sales, which are looking more and more like a fad.
Ideeli’s own finances don’t exactly disprove that view. The company lost $30 million on $115 million in revenue last year, according to a filing released today. That’s not the best news for Groupon’s own profit margins, but we’ll see what the company does with the buy.
Groupon (a portmanteau derived from "group coupon") is a deal-of-the-day website that features discounted gift certificates usable at local or national companies. Groupon was launched on November 2008, the first market for Groupon was ... read more »
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