LivingSocial Inc. has just received another $110 million from its current group of investors who still have hope in the daily deals company. The investors are still fighting for LivingSocial, despite the whole $650 million net loss that it reported in 2012, as well as the $558 million loss it reported in 2011. The company had to lay off around 400 employees back in November, as well as its Senior Vice President, Dickson Chu, back in July.
LivingSocial CEO, Tim O’Shaughnessy sent an e-mail out to all of his employees saying that the $110 million investment will be used to “build our reserves, solidify our long-term plans and execute against our vision for the future”. This should provide a boost in morale for its employees, because if its investors are still willing to bet on it, there might still be hope yet.
The list of investors who shelled out $110 million wasn’t released, but Amazon could have been on that board. Amazon has a 30% stake in LivingSocial, and for one of the most successful e-commerce sites, it’s going to do its best to make sure its investment doesn’t go sour. O’Shaughnessy did say, however, that LivingSocial had multiple options for funding.
O’Shaughnessy has high hopes for this year, and has stated that by Springtime, LivingSocial will begin to see profits. LivingSocial isn’t the only daily deals site that’s having it rough. Groupon, the other well-known daily deals site, who 12 months after it went public, reported that their IPO pricing of $20 plummeted 88%. Hopefully with this newly acquired money, LivingSocial will be able to get itself out of its slump.
[via Washington Business Journal]