$138 million in funding for Gilt Groupe
Online private sales company Gilt Groupe said Monday that it has raised $138 million in new funding led by Japan's Softbank Group.
A source close to the operation said the new financing valued Gilt at $1 billion and will be used for acquisitions and expansion into new business categories.
Softbank Group invested $62.5 million and made "additional contributions" into Gilt Groupe Japan, Gilt said, to establish a 50-50 joint venture between the two companies.
"I am very excited to see further expansion of Gilt's offerings to Japanese customers," Softbank Group chairman and chief executive Masayoshi Son said in a statement.
"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," Son said.
The other participants in the round of funding invested $75.5 million into Gilt Groupe in the United States, Gilt said.
They included General Atlantic, Matrix Partners, Goldman Sachs, New Enterprise Associates, Draper Fisher Jurvetson Growth, Pinnacle Ventures, TriplePoint Capital and Eastward Capital.
Gilt launched in 2007 offering women's luxury clothing and accessories through private online "flash" sales but has since branched out into other businesses.
Gilt said Monday that it plans to launch a gourmet food site in the next few months and a men's online retail store.
Gilt Groupe has received more than $240 million in total financing since its launch in November 2007.
(c) 2011 AFP
