Gilt Groupe has closed a series C round stock financing of USD43m with General Atlantic and Matrix Partners.
Gilt Groupe has closed a series C round stock financing of USD43m with General Atlantic and Matrix Partners.
Global growth investor General Atlantic led the round and Matrix Partners, which led the company’s A and B rounds, also participated. The new financing will be used to secure Gilt Groupe’s position in online flash sales, an e-commerce model that has seen rapid growth in recent years.
Since its launch in November 2007, the company’s flagship property at Gilt.com has built a consumer following with daily flash sales of luxury and designer goods at members-only pricing. The company has quintupled its membership in the past year, with 1.3 million registered members in the US and more than 200,000 on its five-month-old Japanese site. Company revenue for calendar year 2009 is expected to be in excess of USD150m.
"At General Atlantic, we look to partner with great management teams to strengthen and propel exceptional companies to their next phase," says managing director Anton Levy, who is joining the Gilt Groupe board in connection with the financing. "We are very excited about the opportunities we see with Gilt Groupe. Its passionate customer base and impressive growth speaks to the strength of the business model, even in tough economic times, and validates our decision to invest in the company."
"We couldn’t be happier that General Atlantic has chosen to invest in Gilt Groupe, and look forward to working with Anton Levy and the GA team," says Susan Lyne, chief executive of Gilt Groupe. "The company’s impressive track record and investment philosophy make them ideal partners and a valuable resource as we execute on our aggressive growth plan."
Gilt Groupe plans to leverage its private sale model with new category launches targeting aspirational and enthusiast consumer segments. This month, the company will launch Gilt Fuse, a contemporary fashion site for younger members, followed by a vacation travel site, jetsetter.com. As a result, Gilt Groupe expects to host over 4,000 in 2010, up from 1,500 in 2009.
"We continue to be impressed by Gilt’s performance and the value it provides to consumers and brand partners alike," adds Nick Beim, general partner of Matrix Partners and a director of the company. "Our additional investment reaffirms our confidence in the company’s strategic plan and our commitment to the company’s success."
