The leading US private sales shopping club Gilt Groupe, according to Business Insider, has raised between $80 to $100 million in a new financing round. The valuation is presumed to lie at one billion dollars.
Gilt is expecting to have revenues for the current business year in the order of $500 million.
"To date, the New York-based Gilt Groupe has already raised more than $80 million in several rounds from Matrix, General Atlantic and others. Revenue is expected to be near $500 million in the current fiscal year, with valuation for the new financing hitting about two times revenue. That’s pretty similar to the price paid for HauteLook."
Business Insider's name can be taken literally in this case, as the news service shares some of the same founders/owners as Gilt. Their report contains some interesting details/rumours about the US market for private sales clubs:
- Gilt Groupe may be having overstocking problems
- GSI Commerce is struggling with RueLaLa
- Amazon is preparing a US start for BuyVIP
The private sales club sector is currently again on the move. The private sales club HauteLook was recently acquired by retail chain Nordstrom for $270 million.
One Kings Lane, which specializes in home furnishings and decor has lately received financing from Kleiner Perkins and Greylock in the order of $23 million.
Related posts:
- Vente-Privée Grows 15% in 2010 to About 780 Million Euro
- Live Shopping Now A Tech Megatrend in Silicon Valley
- ShowRoomPrive Makes Number 2 Spot in France’s Private Shopping Club Scene
Originally posted in German by Marcel Weiss and Jochen Krisch, adapted for excitingcommerce.com by Jason Soo.
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