Gilt Groupe is known for its online flash sales of women’s designer apparel and has built a cult-like following among shoppers lured by $3,000 dresses that sell for a few hundred dollars or less. The site was launched in 2007 with women’s designer wear but then it moved into high-end men’s and children’s apparel and accessories, designer home goods and luxury travel packages over the past two years and made a success of it due to its large consumer base.
They are planning a new round of financing in the first half of next year in order to expand beyond apparel and travel. The financing is expected to be in the range of $50 million to $100 million. Kevin Ryan, the Chief Executive said that it might involve bringing in a new investor. The shopping site is expected to gross $500million in calendar 2010.
Gilt Groupe was founded by Ryan, who at that time ran an online ad agency, Alexis Maybank from eBay and Alexandra Wilson with experience from Bulgari and Louis Vuitton. General Atlantic and Matrix Partners have invested in the business to the tune of $90 million. The fresh round of financing will go toward launching new businesses.