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The Innovators

Groupon Scoops Up Fashion Flash-Sale Site Ideeli for a Cool $43 Million

Groupon Scoops Up Fashion Flash-Sale Site Ideeli for a Cool $43 Million
Image credit: allthingsd.com

The Innovators


WE CELEBRATE AND ENCOURAGE INNOVATION.

Innovators push the boundaries of the known world. They're change agents who are relentless in making things happen and bringing ideas to execution.

Groupon, home of the daily deal online, just got a pretty sweet deal.

Chicago-based Groupon bought fashion flash-sale site Ideeli for $43 million in cash, the companies announced on Monday. Launched in 2007 with millions of members, New York-based Ideeli has raised $107 million in venture capital funding since its founding, so being sold for less than half of that appears to be a loss for investors.

Ideeli sells clothes for men and women and home decor online at a discount. New categories of sales come online at noon EST each day. Competitors in the increasingly hot space include Rue La La and Gilt Group.

Groupon has already tested the waters beyond daily deals for restaurants, athletic classes and spa treatments -- its first areas of expertise -- into the merchandise sector, with the online retail store Groupon Goods

"Our customers have a demonstrated appetite for these offers, and by broadening our reach in this space Groupon is even better positioned as the place you start when you want to do or buy just about anything, anytime, anywhere," says Groupon's new-ish CEO Eric Lefkofsky. Lefkofsky was brought on permanently in August, after a temporary stint at the helm after Groupon ousted its founder Andrew Mason in February.

Ideeli will continue to operate as its own website and will remain in its existing New York City-headquarters.

Related: Remember 'Draw Something'? Its Founder Is Now Writing Something -- A Screenplay.

 

Catherine Clifford is a senior writer at Entrepreneur.com.

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