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Vishu Bheda
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Medial • 1y
They were the fastest company EVER to hit a billion-dollar valuation. Their revenue grew 22,000% in one year. Then they refused Google's $6B acquisition offer. Now, no one knows if they'll survive. The crazy story of Groupon's meteoric rise — and devastating fall: In 2008, Groupon changed the game by offering huge discounts, helping businesses attract customers. By 2011, it was valued at $12B, had 150M users, and even turned down Google’s $6B buyout offer. But problems started. Businesses realized these discount hunters weren’t loyal, and they lost money on deals. As the economy improved, fewer people needed discounts, and Groupon’s growth slowed. The company expanded too quickly, spending heavily on employees and marketing. Bad decisions, like entering food delivery, made things worse. By 2024, Groupon’s revenue had dropped 80%, and they were still losing money. Lesson: Without a strong, sustainable plan, growth doesn’t last.
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