We decided to go for the Groupon valuation and create a financial model for it last week. With all the multi-billion dollar valuations that have been floating around the internet, it was really tempting to de-bunk all their theories.

As we went deeper into the model, we realized that the set of assumptions upon which this financial model relies varies a lot from different perspectives. Another thing that complicated matters was that the growth rate shown by this firm has no parallel.

This made it an interesting task for me, and for our company intern, Rakesh. However, we have managed to glean enough data and present the set of assumptions in an acceptable manner.

What I would want from you dear readers, is to verify my assumptions and look at the Revenue Build-up spreadsheet and let me know if there are any obvious mistakes or any other data that I can build into this model.

You can download the model here –

Financial Model for Groupon