Digital coupons could be poised for greater growth judging from the warm reception industry leader RetailMeNot got when it offered shares to the public last week.
Shares of RetailMeNot surged 30% in the first hours of trading to more than $27 per share, representing a market cap of more than $1.3 billion, according to Norwest Venture Partners, a multi-stage investment firm which has a 20.5% stake in the company.
"RetailMeNot has pioneered this space, making online coupons as ubiquitous as online shopping itself," said Jeff Crowe, managing partner at NVP. "What drew us to become a major investor in RetailMeNot was the company's early vision to make online coupons a staple for consumers and merchants alike."
RetailMeNot generated $144.7 million in 2012 revenue. In the first quarter of 2013, the company posted revenue of $40.6 million.
NVP manages more than $3.7 billion in capital and has funded more than 500 companies since its inception 50 years ago. Headquartered in Palo Alto, Calif., the firm has subsidiaries in Mumbai and Bengaluru, India, and Herzelia, Israel. NVP makes early- to late-stage venture and growth equity investments across a wide range of sectors, including technology, information services, business services, financial services, consumer products/services and healthcare.