LivingSocial, Washington-based daily deals site, is seeking to raise $200 million in venture capital from new and old investors, Financial Times reports. It is also in talks for a nearly $100 million credit facility as part of the fundraising, which may value the company at $5 billion, adds The New York Times.
The company is negotiating with new investors such as JPMorgan Digital Growth Fund. The deal is likely to close next week. The company will utilize the funds to develop more products. It will not use the money to cash out existing shareholders. The fundraising will also help the company give competition to rival Groupon.