The online discount coupon seller Groupon may raise $950 million in fresh equity funds, the biggest in more than six years since Google went public. Reports available on Tuesday suggest that the company has filed for Series G funding that authorizes the company to raise $950 million in preferred stocks, and potentially values the company at $8 billion.
VC Experts – a venture capital information firm reported Groupon “filed a certificate to authorize a $950 million Series G round of preferred stock”, details of which will be available next week.
Groupon was in the news recently for a possible take-over bid by Google for $6 billion. Groupon issues discount coupons on behalf of local merchants looking to boost sales and keeps half of the money raised from campaigns run. Since the talks fell through, there were speculations that the company will go for a fresh round of fund raising to stay independent.
The company had last raised $135 million in April from investors led by Russia’s Digital Sky Technologies – the company that invested in Facebook and other prominent Silicon Valley companies. If the latest round of fund raising goes through, the company will be raising nearly $1.1 billion for expansion purposes.
According to details available at VC Expert’s site and deal term database, Groupon will issue 30.1 million of preferred stocks (Preferential shares) priced at $31.59 a share. The total number of shares issued with voting rights will increase to 250 million after the latest round and if all those shares are issued, Groupon’s valuation will be around $7.4 billion.
VC experts suggested that Groupon will use the fresh capital for expanding its overseas operations.