Gilt Groupe Competitor Ideeli Raises $40 Million in Capital
I hope all those trendy runway outfits have deep pockets.
New York-based Ideeli, which operates a members-only flash sales site aimed at the affluent, has raised a hefty $41 million in a third round of capital.
Similar to Gilt Groupe, Ideeli offers limited-time sales to its members in apparel, accessories, home, shoes, kids, travel and lifestyle categories. Most sales start in the afternoon and last 40 hours before they expire or the inventory is gone.
The round was led by Next World Capital with Cue Ball Capital, StarVest Partners, Constellation Growth Capital and Kodiak Venture Partners also participating. In total, the company has raised $64.8 million.
The company, founded by CEO Paul Hurley four years ago, said the equity will be used to support growth and expansion plans, including new categories, partnerships, technology initiatives, marketing campaigns and hiring.
With four million members, it claims to be the fastest-growing members-only shopping company.
Gilt Groupe, also based in New York, has not disclosed how many members it has, but as of about a year ago it said it had 3.5 million members. Gilt has raised close to $50 million with the last round coming in December. However, it’s been reported that it could be close to raising a much larger round totaling $100 million.
Both companies fit squarely in the niche of finding new channels to reach shoppers, who are lured in by deep discounts on a small “curated” set of items that fit with their lifestyle.
Other companies riding this wave include GSI Commerce-owned Rue La La, HauteLook, which was purchased by Nordstrom for up to $270 million in February, and One Kings Lane, which is focused on home decor and recently raised $23 million.