Coupon Craze Continues With CouponCabin Raising $54 Million
Investors are seeing a smart shopping opportunity in the age-old practice of saving and redeeming coupons.
CouponCabin.com of Whiting, Ind., is the latest online coupon company to raise capital. The company has raised $54 million in its first round of funding.
CouponCabin’s round was led by JMI Equity.
CouponCabin says the cash will go toward growing its consumer audience and the relationships it has with merchants, including local businesses and groceries. Today, it has deals on its site from such brand-name properties as Dell, RadioShack, Target.com and Best Buy; and exclusives from lesser-known retailers like AutoAnything, Just My Size, BuyCostumes and Think Geek.
It says the main difference between it and its competitors is that CouponCabin tests the deals to make sure that coupons will work, checking up to three times a week that the offer is still valid. If it isn’t, they’ll give the consumer a $25 gift card.
The site, which was founded in 2003, works with more than 3,500 stores nationwide and has presented more than 100,000-plus offers this year alone. In addition, the company said it has generated $500 million in online retail sales for its merchants and has saved its users more than $300 million since 2003.