clock menu more-arrow no yes

Heavily Funded Ideeli Sells to Groupon for $43 Million

The once-promising site has been looking for a buyer.

Juan Camilo Bernal / Shutterstock

Well, Ideeli found its buyer.

Chicago deals company Groupon said on Monday morning that it was buying the heavily funded flash sale site for $43 million. The move gives Groupon a foothold in the world of discount fashion, as well as some technology and fashion-industry experience as it experiments with helping local boutiques offload their excess inventory.

For Ideeli, the outcome is a letdown, considering that the company had raised more than $100 million in venture capital. But it’s not a surprise; I reported a month ago that the company was looking for a buyer.

Ideeli has more than 150 employees, a Groupon spokesman said, but he wouldn’t disclose how many of them would keep their jobs post-acquisition. It lost $30 million on $115 million in gross revenue in the 12 months ending February 2, 2013, according to the regulatory filing announcing the deal.

This article originally appeared on Recode.net.

Sign up for the newsletter Sign up for The Weeds

Get our essential policy newsletter delivered Fridays.