Online private shopping club gears up for next phase of growth with $12 million investment
Montreal, Quebec - July 12, 2010 - Flash sale site Beyond the Rack today announced that it has raised USD $12 million in funding from Highland Capital Partners LLC and BDC Venture Capital Inc. The proceeds from the equity issuance will be used to finance accelerated growth and expansion of operations.
Launched only 18 months ago, Montreal-based Beyond the Rack is the fastest growing private sale club in North America, having added over 1.5 million members in that time. Revenues have also ramped up quickly as the company continues to increase its top-line sales at a rate of over 30% each month to become a leader in the private, flash sale marketplace. With up to eight branded sale events per day, Beyond the Rack offers consumers the most sought after designer apparel, accessories, beauty, and home decor at up to 70% off retail prices.
While many other online shopping clubs target narrower market niches, Beyond the Rack has distinguished itself by aiming at a broader demographic with a diverse selection of merchandise that includes men’s and women’s apparel and accessories, children’s clothing and toys, beauty, housewares, and home décor. “This important investment will allow us to continue to expand our presence in both Canada and the United States,” said Yona Shtern, CEO of Beyond the Rack. “We are absolutely delighted to add such distinguished and sophisticated investors to our team,” added Mr. Shtern.
“Beyond the Rack’s early growth has been impressive and a testament to strong consumer demand and the company’s business model,” added Dan Nova, General Partner with Highland Capital Partners. “We are extremely pleased to be joining the team and look forward to playing a pivotal role in their continued success as a market leader in North America.”
Highland boasts an impressive track record leading investments in innovative Internet and disruptive commerce companies. Previous investments by the firm include such companies as VistaPrint, Lululemon Athletica, Ask Jeeves, Lycos, MapQuest, and more.
“We have been watching Beyond the Rack transform from a start-up into a market leader in just over 18 months and consider them one of the most exciting companies to emerge on the North American technology scene in years,” said Steve Abrams, Director at BDC Venture Capital. BDC is a major venture capital investor in Canada, active at every stage of the development cycle, from seed through expansion.
This latest round of funding from Highland and BDC follows Beyond the Rack’s previous USD $4.5 million investment from European Internet entrepreneurs Oleg Tscheltzoff and Oliver Jung, venture fund Montreal Start Up, and entrepreneur and angel investor David Chamandy.