Gilt Groupe, Inc. Announces $138 Million in New Funding
NEW YORK, May 9, 2011 /PRNewswire/ — Gilt Groupe, Inc., an innovative online shopping destination, today announced it has raised $138 million from new and current investors. The new financing will be used for various growth initiatives, including acquisitions, new business categories Gilt plans to launch, as well as the acceleration of growth in existing categories and geographies.
Participants in the financing round include SOFTBANK Group; Gilt Groupe’s previous investors, General Atlantic and Matrix Partners; as well as a syndicate of new investors including Goldman Sachs, New Enterprise Associates, Draper Fisher Jurvetson Growth, Pinnacle Ventures, TriplePoint Capital and Eastward Capital.
SOFTBANK Group, a Japanese telecommunications, internet and media conglomerate, has invested $62.5 million into Gilt Groupe. In addition to that investment, SOFTBANK Group has made additional contributions into Gilt Groupe Japan, of cash, services, and intangible property to establish a joint venture between the two companies, representing a 50% stake for SOFTBANK Group in that business. The other partners invested a total of $75.5 million into Gilt Groupe in the US.
“We are very excited about each of the partners we’ve chosen and the opportunities this financing creates as we continue to expand into additional categories as well as make strategic acquisitions to complement existing business lines,” said Kevin Ryan, Founder and CEO, Gilt Groupe, Inc.
In the next several months Gilt will launch a gourmet food site as well as a full-price men’s online retail store as the Company continues to expand beyond its original business of off-price apparel and accessories through the flash sales model. In November 2007, Gilt Groupe launched as an invitation-only site for coveted women’s apparel and accessories. Today, Gilt Groupe has added business lines in home (Gilt Home); children (Gilt Children); men’s apparel and gear (Gilt MAN); vacation travel (Jetsetter); local services and experiences (Gilt City), and has founded the leading flash-sale site in Japan (Gilt Groupe Japan).
“I am very excited to see further expansion of Gilt’s offerings to Japanese customers,” said Masayoshi Son, Chairman and CEO of SOFTBANK Group. “With our Internet technology and Gilt’s innovative service, we look forward to working together to bring the Japanese market to a new stage of online shopping.”
“In just a short amount of time Gilt has successfully brought the flash sale model to Japan as well as introduced local city experiences through the launch of Gilt City Japan,” said Peter Glusker, CEO, Gilt Groupe Japan. “This newly formed joint venture with SOFTBANK will allow us to expand our offerings in Japan at a faster rate as well as benefit from SOFTBANK’s unique set of assets and expertise in Japan.”
To date Gilt Groupe has secured over $240 million in total financing since establishing operations in November 2007.
About Gilt Groupe, Inc.
Gilt Groupe, www.gilt.com, is an innovative online shopping destination offering its million members special access to the most inspiring merchandise and experiences every day, many at insider prices. Gilt continually searches the world for the most coveted brands, including fashion for women, men and children, home decor, hotels and travel experiences on every continent, and unique activities in a growing list of cities and destinations. We believe that every day is an opportunity to inspire and be inspired.
Gilt Groupe Japan, www.gilt.jp, was launched in March 2009, and has established itself as the leading flash-sales site in Japan with over 600,000 members.
SOURCE Gilt Groupe, Inc.