Within the same point of view that let us to see a group as a category, a groupoid is a category like a group category, but with several objects, not only one. It's as if we were combining several independent groups...
A Lie groupoid can thus be thought of as a "many-object generalization" of a Lie group.
The holonomy groupoid of a foliation
(From this talk about the leaf space of a foliation.)
Let be a foliated manifold. The holonomy of a foliation, , is a smooth groupoid with as the space of objects. If are two points on different leaves, there are no arrows from to in . If and lie on the same leaf , an arrow in (i.e., a point with and ) is an equivalence class of smooth paths with and .
Two such paths and from to are considered equivalent (i.e., they define the same arrow ) if they induce the same holonomy. Intuitively, this means that if you take a small transversal submanifold through (a slice that cuts across the leaves) and slide it point by point along to a transversal through , you get the same local diffeomorphism between these transversals as you would by sliding along . In other words, the two paths have the exact same effect on how nearby leaves are "permuted" or "wrapped" around the leaf .