You’d be hard pressed to meet someone who hasn’t heard about Groupon and the huge degree of success it has achieved in the last couple of years. The website is built around the idea of bringing discounts to consumers and bringing new customers and more visibility to local businesses as well.
$950 million has been raised by the company to invest in the future of the Groupon idea. The interesting part is that some have questioned whether such an investment can be sustained, as they point to rapid growth and ask whether such a thing can carry on for the long term. However it will be intriguing to see where the company goes with this injection of money.
The past year has certainly been a big one for the company. It started the year with two million subscribers. But by the time 2010 came to an end that figure had grown by an amazing amount – to around fifty million subscribers. With such a notable increase in people looking for great deals, will we see an inevitable slowdown in the subscriber base growth in the coming year?
It remains to be seen how much more Groupon can do, especially in the wake of something of a backlash from certain quarters. Some of the businesses that have used the Groupon idea have been less than impressed, judging by some news reports. But there are obviously satisfied customers as well, so it remains to be seen how this new cash injection will affect the future of Groupon.