Gilt Raises Massive Funding Round To Expand Flash Sales Model

 By 
Lauren Indvik
 on 
Gilt Raises Massive Funding Round To Expand Flash Sales Model
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Softbank Group invested $62.5 million and also took a 50% stake in Gilt Groupe Japan, the leading flash sales site in the country.

The remaining $75.5 million was invested in Gilt Groupe's U.S. business by a mix of existing and new investors, including General Atlantic, Matrix Partners, Goldman Sachs, New Enterprise Associates, Draper Fisher Jurvetson Growth, Pinnacle Ventures, TriplePoint Capital and Eastward Capital.

The funds will be used to fuel growth, including acquisitions, new business verticals and the expansion of existing business categories.

Gilt Groupe has applied its flash sales model to a number of different categories, including apparel and accessories for women and men, children (Gilt Children), home (Gilt Home), travel (Jetsetter), and local services and experiences (Gilt City). The company is planning to move beyond the flash sales model by launching Gilt Man, a full-priced retail site for men, this summer.

Meanwhile, U.S. competitor ideeli raised $41 million in April, which it plans to use to enter into new categories as well.

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