Groupon has received a $250m (£175m) investment from private investment firm Atairos Management.

Groupon has been struggling with growing competition in the market for vouchers and deals.

It will use the fresh funds to invest its business and repurchase shares.

Groupon’s shares rose more than 12% after the investment was announced. Its shares, which first listed back in 2011 at $20, fell as low $2.15 earlier this year, but are now at around $4.40.

“Our partnership with Atairos will help accelerate our transformation while better positioning us to execute on our strategy and mission to build the daily habit in local commerce – which we continued to make progress on in the first quarter,” said Groupon chief executive Rich Williams.

Atairos was started with $4bn of funding from cable company Comcast.

It is run by Michael Angelakis who was previously the finance chief at Comcast.

As part of the plan Mr Angelakis will join Groupon’s board of directors.

The deal will also connect Groupon and Comcast – the largest cable provider in the US – in an effort to increase “strategic partnership opportunities”.

“The potential in combining Groupon’s local expertise with Comcast’s vast subscriber and advertiser network is something we look forward to closely exploring together,” said Comcast’s chief executive Neil Smit.