Czech investment group takes on Groupon’s revival with high stakes strategy

In an ambitious move, Czech investors are working to revive Groupon, the American discount giant that once thrived in the early 2010s but has since struggled. Backed by Czech investment group Pale Fire Capital, led by Dušan Šenkypl and supported by figures like Ondřej Fryc, the company may be on the brink of a major comeback.

While Groupon recently reported a quarterly profit of USD 14.5 million, its stock price dropped 20 percent, raising doubts among investors. Pale Fire Capital, which began investing in Groupon in 2021, has focused on restructuring the company, according to Czech Crunch.

Since becoming CEO in March 2023, Šenkypl has reshaped Groupon’s management team. New leaders include former Slevomat head Marie Havlíčková and experienced entrepreneurs from companies like Aukro, Rohlík, and Keboola. Despite this new leadership, the company continues to face challenges, including significant losses over recent years and the pandemic's economic toll.

Šenkypl remains hopeful about Groupon’s recovery. “I believe in the business model—it’s sustainable, but it needs adjustments,” he says, acknowledging that the path forward is more difficult than first anticipated. Although Groupon’s recent quarterly report showed a notable net profit of $14.5 million (up from a $40.8 million loss in the same period last year), its stock price fell by 20 percent after the announcement, leaving investors wary.

The involvement of Fryc, who previously sold the Czech e-commerce leader Mall, adds weight to this effort. Through his fund, Reflex Capital, Fryc is also betting on Groupon’s revival. “It’s inspiring to see Czechs leading a major international business,” he says. “If we succeed, it will be a huge win for the Czech Republic.” He adds that while potential profits drive him, patriotism is also a motivator.

Although based outside the U.S., Šenkypl has fully committed to Groupon’s turnaround. “The company is complex, with a lot happening behind the scenes,” he explains. Leading a global enterprise demands constant communication with teams worldwide, prompting Šenkypl to step back from other projects to focus on Groupon.

The Czech-led strategy is drawing attention in business circles. If successful, it could mark a major achievement, showing that small-market countries like Czechia can compete globally and lead major corporate recoveries.