Daily deals startup LivingSocial has raised $176 million in a private offering.
The funds were raised from a mix of new and existing investors, including Amazon (which invested $175 million in the company in late 2010), U.S. Venture Partners, Grotech Capital Group and AOL founder Steve Case’s venture fund, according to a SEC filing.
The Washington, D.C.-based startup is trying to raise $400 million in total. A source says the company expects to close additional rounds of funding in the coming weeks and months, which will be used to finance operations for continued expansion. None of the funds will be used to pay out current investors.
Last month, rumors began circulating that the daily deals startup was raising $200 million in a deal that would value the company somewhere between $5 billion and $6 billion.
JP Morgan Asset Management’s new Digital Growth Fund, as well as existing investors Amazon and T. Rowe Price, were among those rumored to be contributing to the round. LivingSocial was also allegedly discussing a $100 million revolving credit facility with JP Morgan that would allow the company to draw funds without signing a loan for each withdrawal in the future. As far as we know, those discussions might still be on the table.
The funding does make one thing clear: LivingSocial isn’t likely to IPO any time this year. LivingSocial’s main competitor, Groupon, went public in early November, and it’s been a tumultuous ride ever since, to say the least. Shares were trading at around $21 per share in after-hours trading Wednesday, up about $1 from the initial offering price.
The additional capital should give LivingSocial an opportunity to catch up — and continue differentiating itself — from its rival. Both companies have launched new offerings recently. Earlier this week, LivingSocial unveiled a restaurant delivery service in the Washington, D.C. region. And Groupon announced an appointment-booking tool that lets customers independently book appointments with small businesses online, regardless of whether those appointments are associated with a Groupon deal.
The company raised $400 million in its last fundraising round in April.
The news was first reported by Bloomberg TV’s Emily Chang on Twitter.
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