Groupon Moves Into Flash Fashion, Buys Ideeli For $43M In Cash

TechCrunch

More acquisitions for Groupon to widen the net of consumers using its platform for more than daily deals. Today it is announcing the acquisition of ideeli, a flash fashion retailer, for $43 million in cash. A potentially strategic gain for Groupon, however, is a big loss for ideeli’s investors: the New York-based company had raised $107 million in funding from investors like StarVest, Kodiak and Credit Suisse since being founded in 2007.

According to a Q&A Groupon filed with its 8-K report detailing the acquisition, Groupon says ideeli made $115 million in revenue for the fiscal year ended February 2, 2013, and a $30 million operating loss. The market so far is not hugely enthusiastic about the news with Groupon trading down by around 2 percent to $11.34.

The acquisition underscores Groupon’s current acquisition mode and push to expand into new product categories. It comes on the heels of…

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