LivingSocial, a US-based discount coupon provider backed by online retailer Amazon, has raised $110m from a group of existing investors.
Tim O’Shaughnessy, chief executive of LivingSocial, told employees in an emailed memo seen by news providers BizJournals and Returers that LivingSocial had an “aggressive roadmap,” including investments in marketing, technology and mobile, to become profitable and expand this year.
“This new investment round will allow us to dedicate the resources we need, while also building a significant cash reserve against unanticipated events or bumps in the road,” the CEO wrote.
News provider Fortune said Amazon invested in the latest round and links through to LivingSocial’s Delaware filing with details on the round’s terms – click here for Fortune’s piece.
Earlier in the month, Amazon wrote down the value of its minority equity holding of LivingSocial, which was formerly known as Hungry Machine.
Amazon in its regulatory filing said it owned 29% of LivingSocial worth $52m at the end of last year, down from $94m at end-September. The latest round broadly values LivingSocial’s equity at $1.5bn based on the company selling 7.5% to raise the $110m, according to a company memo published by Fortune.
LivingSocial posted revenues of $536m last year, more than double the $250m in turnover in 2011, but lost money on its offers with an operating loss of $862m for 2012, up from $669m in 2011. With a $579m impairment charge added, LivingSocial gave Amazon a $905m operating loss.
In 2011, LivingSocial raised $176m of a planned $400m round.