New York—Entrepreneurial flash sales site, ideeli, today announced a $30 million Series D financing from Credit Suisse and current institutional investors.
The new capital, which follows up $41 million raised in series C round of funding last year, will be used to continue ideeli’s strong growth and to further invest in the company’s infrastructure.
Ideeli, which was named the fastest growing company in the United States last year by Inc. magazine, is a members-only retail site offering a curated selection of apparel, accessories, shoes, and home and travel items. Each sale starts at noon Eastern time and lasts 40 hours. The company’s 2010 revenue was estimated at $77.7 million in 2010, having grown 40882% in three years.
‘Constantly Evolving Retail E-Commerce’
“This new round of financing validates all that we have done to become a leading online retailer of aspirational and mainstream women’s fashion with over 5.5 million members and 3,000 brand partners,” said Paul Hurley, ideeli’s ceo/founder. “The investment will enable us to continue on our growth path as we transform our business beyond the flash sales model into the next generation of e-commerce.”
Proceeds from the funding will be used primarily to fuel growth, further develop ideeli’s customer data and insights, and continue to deliver a “highly curated and editorialized customer experience” that drives sales.
“ideeli stands apart thanks to our leading presence in the most significant retail growth market–aspirational and mainstream women’s fashion online–and our relentless efforts to know and connect with customers better than any other retailer,” added Hurley. “By building lasting relationships with our customers and with leading brands, we are taking a smart approach to ensuring long-term success in the constantly evolving field of retail e-commerce.”
Retail analysts have speculated that flash sales site such as ideeli and Gilt Groupe may run into trouble trying to gain access to enough inventory to fuel their growth. Unlike Gilt which sells mostly higher end, designer branded merchandise, ideeli has expanded into mid-tier brands and boasts “3,000 brand partners.”
“They’ve done a good job managing growth and raising enough capital to keep staying in business,” said Sucharita Mulpuru, an analyst with Forrester Research,
Moving Headquarters to Garment District
In August, ideeli becomes the latest retailer to move its headquarters back into the Garment District in Manhattan. The company is taking 31,500 square feet—the entire 45th floor—of 620 Eighth Ave. at 40th Street in the New York Times Building. The 5-year-old company had previous been located on Lafayette Street in SoHo.
“The fact that our merchants interact so heavily with the brands who are mostly located in the garment district” influenced the decision, Bob Wuesthoff, ideeli’s coo told Crain’s recently. www.ideeli.com.