The quarterly report for Groupon was quite eye opening. In many ways, there was much in the report that should have been a given, however considering the negative surprises in between, most had little to no respect for the revenue numbers that came from management beforehand. Now Groupon plans to take this ecommerce game to the next level and insert itself as the operating system of local commerce, at least according to the firm’s CEO, Andrew Mason.
The daily dealing gorilla is making some serious attempts to reassure investors of its long-term viability. According to Paymenteye.com in a letter to investors, “Mason claims that the internet is yet to revolutionize local commerce as it has done for markets such as media and entertainment, and he remains bullish about Groupon’s prospects in the coming months despite conceding that its first six since its $700 million IPO were “rocky to say the least”. Mason says that Groupon is developing a platform for local commerce as it attempts to tap into what he describes as a “multi-trillion dollar ecosystem”, hinting that the company is set to move beyond simply offering daily deals to consumers.” Read more
Finally, Groupon, the daily-deal website announced that it will go for Initial Public Offering (IPO) in November. IPO was on the radar of Groupon since they turned down Google’s $6 billion acquisition offer.
With IPO, Groupon is expecting to raise $621 million, valuing the company at $11.4 billion. This is slightly less, compared to their earlier expectation of $750 million and a $15 billion valuation. They plan to sell 5% of the shares through IPO for $15-$16 apiece and get listed on NASDAQ with the ticker ‘GRPN’.
Couple of months back, Groupon had put the IPO on hold due to its ‘not-so-good’ financials and market volatility. Now, even though the market is still volatile, the strong financials have given confidence to Groupon for going public.
Cobone. Com, the popular group buying website in the Middle East has been honored as the ‘Best Ecommerce Website’ at the 2nd Annual Abu Dhabi Internet Show.
Cobone started its operations on August 2010 and so far more than 800k members have used it for regional online deals. The website has so far sold more than 300,000 of coupons and has a savings of more than $19 million. Cobone started with a single market and now serving five markets and nine cities. Read more