LivingSocial Seeks Capital Injection to Battle Groupon and Google
LivingSocial has already received investment from Amazon (NASDAQ:AMZN), but is looking to raise $2 million from new and old investors. The daily deal site is also looking to get an additional $100 million in credit. Sources close to the deals say these transactions will raise the value of the company to more than $5 billion.
The additional funds will be used toward the company’s rapidly expanding sales force and to take the company into new markets. LivingSocial is raising funds in the wake of a large cash injection to its main competitor, Groupon (NASDAQ:GRPN), who was wildly successful in their initial public offering two weeks ago. While an IPO is not out of the question for LivingSocial, it’s reported that plans have not been finalized.
DealBook reports that LivingSocial has been striving in recent weeks to differentiate itself from its competition including Groupon and Google Offers (NASDAQ:GOOG), as evidenced by the introduction of its new instant delivery for restaurants and premium “white glove service” for fine dining establishments in the Washington area. While LivingSocial is looking to its existing investors to help raise funds, sources also report that the company is courting new investors such as JP Morgan Digital Growth Fund (NYSE:JPM), a key investor in Twitter.