Groupon Inc chairman Eric Lefkofsky said he expected the money-losing daily-coupon provider, which filed on Thursday to sell shares to the public, to be “wildly profitable.”
Lefkofsky, who co-founded Groupon and is its biggest shareholder, made the comments on Friday in response to questions about businesses that he previously ran or founded. These include Starbelly.com, InnerWorkings Inc and Echo Global Logistics Inc.
“I’m going to be in technology for a long time,” Lefkofsky said. “I’m going to start a lot of companies. These are not sham companies. These are great businesses. InnerWorkings is profitable. Echo is profitable. Groupon is going to be wildly profitable.”
Online-coupon pioneer Groupon said last week it aims to raise US$750 million in an initial public offering (IPO). While sales at the Chicago-based company surged more than 14-fold to US$644.7 million last year, Groupon has also amassed US$540.2 million in operating losses since its founding in 2008 and its costs are rising faster than revenue.
Lefkofsky in 2001 founded printing-service provider InnerWorkings, which went public in 2006. He also co-founded Echo Global Logistics, a shipping-technology firm, in 2005. That company held its IPO in 2009.
Lefkofsky helped found Starbelly.com, an online promotional-merchandise seller, in 1999 and sold it a year later to Ha-Lo Industries Inc for US$240 million. Ha-Lo filed for bankruptcy protection from creditors in July 2001 after writing down the acquisition.
Before Starbelly.com, Lefkofsky and his business partner Brad Keywell bought children’s apparel company Brandon Apparel Group. It later faltered, Lefkofsky said in his blog.
Groupon has surged in the past year as consumers in more than 500 markets worldwide flock to daily discounts of up to 90 percent at hotels, restaurants and nail salons. Its success has inspired more than 480 imitators.
“Groupon is a huge business,” Lefkofsky said.
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