Groupon became one of the fastest-scaling e-commerce platforms of the 2000s, introducing an innovative model that connected customers with local merchants through curated deals and time-bound discounts. The company helped small businesses acquire customers while offering consumers meaningful savings across categories such as dining, wellness, entertainment, electronics, and travel. Over time, Groupon transitioned from daily email-based flash deals to a streamlined marketplace focused on personalization, app engagement, and merchant enablement. The platform continues to support local commerce through discovery, mobile redemption, and partnerships with service providers and retailers.
What Is Groupon and What Does It Do?
Groupon, founded in 2007 by Andrew Mason, Brad Keywell, and Eric Lefkofsky, is a Chicago-based (United States)online marketplace offering multi-category deals on services, products, and experiences. The platform connects consumers with local merchants across food, wellness, activities, travel, and home services.
Groupon employs 969+ people, operating a global marketplace supported by merchant analytics, mobile integration, and discovery tools.
The platform helps businesses acquire customers through discount-driven promotions, enabling easy redemption through its app. Groupon’s model blends marketplace commerce with local experiences, offering deals on spa services, fitness classes, electronics, food delivery, family entertainment, and travel packages.
How Much Funding Has Groupon Raised?
1. Series D
- Amount Raised: $950M
- Date: January 2011
- Lead Investors: Andreessen Horowitz, Kleiner Perkins
- Motivation: Turbocharge international expansion, scale merchant partnerships, and enhance platform technology.
Total Funding Raised: $950M
Latest Funding Date: January 2011
Key Investors
1. Andreessen Horowitz (a16z)
- Details: Leading Silicon Valley venture capital firm backing global-scale tech platforms.
- Investment Focus Areas: Marketplaces, consumer apps, fintech, AI.
- Notable Investments: Airbnb, Meta, Pinterest, Instacart, Roblox.
2. Kleiner Perkins
- Details: Iconic venture capital firm with a long history of supporting breakout internet companies.
- Investment Focus Areas: Consumer internet, retail tech, sustainability.
- Notable Investments: Google, Amazon, DoorDash, Spotify, Snap.
3. NEA (industry-aligned large internet investor)
- Details: One of the world’s largest venture firms, backing transformative consumer and tech startups.
- Investment Focus Areas: Marketplace technology, e-commerce, mobile apps.
- Notable Investments: Groupon (strategic), Uber, Cloudflare, Coursera, Robinhood.
4. Tiger Global Management
- Details: Global investment giant active across consumer internet and commerce platforms.
- Investment Focus Areas: E-commerce, fintech, logistics, consumer apps.
- Notable Investments: Flipkart, JD.com, Wish, Facebook, Peloton.
5. DST Global
- Details: Global technology investor known for scaling internet-first businesses.
- Investment Focus Areas: Marketplaces, mobile apps, social platforms.
- Notable Investments: Alibaba, Spotify, Twitter, Klarna, Airbnb.
Where Is Groupon’s Headquarters?
Groupon is headquartered in Chicago, Illinois, a major hub for commerce, logistics, and retail-tech innovation. The location gives Groupon access to an established business ecosystem and a deep talent pool in product, engineering, and data analytics.
What’s Next for Groupon?
Groupon is focused on refining its marketplace model by improving merchant tools, strengthening local commerce discovery, and expanding categories like wellness, travel, and home services. The company is enhancing its mobile experience, optimizing deal personalization through data insights, and exploring partnerships with regional service providers. With a renewed emphasis on operational efficiency and curated merchant quality, Groupon aims to rebuild long-term customer engagement and strengthen its presence in the local experiences economy.
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