BuyWithMe Raises $5.5 Million For Social Deals

Social shopping site BuyWithMe has raised $5.5 million in a first round of funding from Matrix Partners. BuyWithMe offers exclusive discounts at local stores — but only if enough people sign up to make a purchase (Interested buyers are encouraged to spread the word via social networking sites).

The company — which claims “tens of thousands of dedicated buyers” says it will use the cash to “scale rapidly.” Currently, the company has operations in Boston, Washington D.C. and San Diego and it says it will now expand across the country, in part by adding new local media partners. In Boston, BuyWithMe has a partnership with the Boston Globe‘s, which often advertises the deals on its home page.

(The current ‘ Deal of the Day’ is a dozen roses for $39 or an assortment of tulips for $25 at a Boston area florist).

Competitors include Groupon, which raised $30 million in a funding round in early December. Here’s the release.