LivingSocial Expands into Australia with $5m Investment in Jump On It

By Lauren Dugan Comment

LivingSocial is continuing to expand aggressively, this time opening up its daily deals to the citizens of Australia. The company announced today that it invested nearly $5 million for a controlling majority stake of the company.Jump On It, Australia’s leading social shopping site. This means that LivingSocial’s deals are now available to people in Australia, Canada, Ireland, the UK and the US.

This deal makes LivingSocial the biggest social shopping player in Australia.

The daily deals formerly available on Jump On It will be folded in to the LivingSocial’s brand, and will offer Australians the chance to buy one daily deal at more than a 50% discount, as well as a bonus side deal. These deals are expected to reach more than 1.2 million Australians through the website and Facebook.

LivingSocial reaches more than 10 million subscribers in over 100 markets with their daily deals, and is estimated to be earning $1 million a day. The company projects that it will earn well over $500 million in 2011.

This deal follows several announcements by LivingSocial this fall that speak to the company’s rapid growth. They rolled out hyperlocal deals in select markets early September, began offering urban adventures to their more daring consumers in October, and announced their latest market expansion in September.

Eric Eichmann, COO of LivingSocial, released the following statement about his company’s new presence in Australia:

“Having Jump On It as part of the team is an incredible opportunity for us to get started in Australia, and to offer our curated experiences to more consumers in more locations. We’ve had extraordinary growth this year – and we continue to look for opportunities to grow even further, both domestically and internationally. Our growth and revenue numbers are clear indicators that our business model, our relationship with local merchants and our customer service make us the top choice when consumers seek unique experiences in their area.”