Technology

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

Senior Entrepreneurship Writer at CNBC
2 min read

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.

 

More from Entrepreneur

Grow Your Business at Entrepreneur LIVE! Join us on Nov. 16 in Brooklyn, NY, to learn from legends like Danica Patrick and Maria Sharapova, pitch our editors, meet with investors, and potentially walk away with funding!
Register here

One-on-one online sessions with our experts can help you start a business, grow your business, build your brand, fundraise and more.
Book Your Session

In as little as seven months, the Entrepreneur Authors program will turn your ideas and expertise into a professionally presented book.
Apply Now

Latest on Entrepreneur

My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.