Made public last week, European shopping club PrivateOutlet.com has received 7.3 million Euros ($10m) in venture capital from a group of investors including Munich based BayTech Venture Capital:
"GP Bullhound, the European technology investment bank, today announces the completion of a €7.3 million financing round for PrivateOutlet.com, the Internet based private members designer clothing club.
The funding comes from lead investor BayTech Venture Capital, GP Bullhound Sidecar, Kreos Capital and the management team. It will be used for international expansion and sales and marketing."
France based PrivateOutlet, who sells European wide, claims one million registered users (a somewhat tenuous claim, given Google Trends data).
Key revenue data was released (German press release) by PrivateOutlet in March:
“With 30 percent, Private Outlet produced the most turnover in France. After that follows Italy and Spain with 20% each, then England and Germany with 15%.”
PrivateOutlet told us, that they had achieved 150,000 German members by the month of May.
Nowhere in e-commerce are institutional investors so loose with their cash as in the private shopping club arena. Almost 30 million Euros have flowed during the last one and a half years alone into European clubs with German operations.
In Germany, Brands4Friends is pulling ahead as market leader. According to BuyVIP, they have achieved their “Operational Break Even” in the first half year.
Related posts:
- US Media Discovers European Shopping Club Phenomenon
- French Online Travel Club Voyageprive Broke Even in 2007
Originally posted in German by Jochen Krisch, translated by Jason Soo.
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