By: Pauline Low

What is Groupon?

• Deal-of-the-day website• Derived from “group coupon”

Financial Overview

• Profits from discount deals ->50% goes to Groupon

• 2011 total revenue = $1.61 billion• 2012 total revenue = $2.33 billion• 2013 total revenue = $2.6 billion• Europe -> currently fastest growing market

History

• Founders: Andrew Mason, Eric Lefkofsky, Brad Keywell

• Launched in November 2008• Went public November 2011• First market in Chicago

-> half price offer on pizzas• Available in US, Canada and 41 countries• 10,000 employees in 2013

What’s Hot?

• Recently acquired: Ticket Monster and ideeli

Secret Sauce….

• Non-conventional business model• Offers minimum return of investment• Vast market place of deals• Offers merchants analysis of sales

A Story

• Mason worked in Lefkofsky’s company, Inner Workings• Mason started an enterprise, ThePoint• Get groups of people to solve problem• Lefkofsky’s idea: promote the cause of saving money• A side project, Groupon was launched

• Groupon outgrew ThePoint in 2008• Brad Keywell signed on in 2008• Turned down offers from Yahoo and Google

Competition

Prediction

• Continue to grow..• Venture into more markets such as second hand

goods, fashion and etc.

Questions?