A formal announcement is expected this week or next and should include some or all of its prior investors, Spark Capital, Lerer Media Ventures, and Carmel Ventures, multiple sources told peHUB.
The company raised an $8 million Series A round last year from the aforementioned investors.
The daily deals space has been flush with big bucks and big competitors as of late. Earlier this month, BuyWithMe bought DealADayOnline, representing a growth play for investors Bain Capital and Matrix Partners. And earlier this week — in pretty rapid fashion following the publicizing of its next fundraising round — Gilt Groupe closed a $138 million round.
The space is even heating up internationally. Earlier this month, Tiger Global Management and General Atlantic invested in Peixe Urbano, a Brazilian daily deals site.
There have been even bigger deals in the space, which has become increasingly crowded. Top players are jockeying for IPOs. And bigger media companies are taking notice of the space’s potential while big daily deals sites get even bigger. The New York Times Co. recently revealed plans to launch a daily deals business with its stable of premium advertisers; Groupon nabbed $1 billion earlier this year and Living Social has taken close to half that much over a pair of rounds in a half a year.
VCs involved in the new round for Group Commerce are bullish on its prospects, despite crowding in the space. “There are a lot of daily deal sites out there — a lot of them will fail,” said one of the investors, who is betting that Group Commerce will not be one of them.