Leading online shopping club adds prestigious mix of US and Canadian venture funds to its investor base.
MONTREAL, Nov. 9, 2011 -- Beyond the Rack today announced that it recently closed a $36.6 million USD investment round led by Silicon Valley-based Panorama Capital with additional investment from Export Development Canada, Tandem Expansion Fund, Rho Canada, and Inovia Capital. Current investors Highland Capital Partners and BDC Venture Capital also participated in the round.
Proceeds from the current round of funding will be used to further accelerate growth and enhance logistics and distribution to accommodate the rapid expansion of the Company's active customer base.
Beyond the Rack was recently ranked as North America's fastest-growing online retailer by Internet Retailer's Magazine. The company has attracted over 5 million consumer members and over 3,000 brand partners to its online flash-sale marketplace.
"This significant funding will allow us to continue to maintain our leadership position in both Canada and the U.S." said Yona Shtern, CEO of Beyond the Rack. "We are extremely appreciative of the continued support from our existing shareholders and are thrilled to add such highly respected investors to our team," added Mr. Shtern.
As the category leader in Canada "Beyond the Rack is successfully executing its strategy of rapid expansion with an emphasis on profitable growth, in sharp contrast to some of its competitors. In targeting a much broader segment of consumers, we see an opportunity to build a very substantial company and are delighted to join forces to further expand its thriving business," said Shahan Soghikian, Managing Director at Panorama Capital who will join Beyond the Rack's Board of Directors.
"Watching Beyond the Rack transform from a small start-up into North America's market leader over such a short period of time has been extremely gratifying," added Dan Nova, general partner at Highland Capital. "We are excited to continue to play an active role in the company's further development."