Beyond the Rack, a members-only sample sale site, has raised another round of funding today. The startup has just announced a $12 million round of funding from Highland Capital Partners and BDC Venture Capital. This brings the Beyond The Rack’s total funding to $16.5 million.
Similar to Gilt Groupe, HauteLook and Ideeli, Beyond the Rack is a members-only shopping site that offers steeply discounted (from 50 to 70 percent) on designer brand clothes, accessories and other goods. The site says that its revenue growing over 30 percent per month and currently has 1.5 million members, doubling its userbase from six months ago.
Beyond The Rack launches up to eight new sales events every day, with each event only lasting a few days. The model has done fairly well in the space, with similar sites seeing rapid growth. There’s the rumored acquisition of European sample sale site Vente-Privee by Amazon for an estimated $3.01 billion. And sample sale sites Gilt and Ideeli have recently raised large amounts of funding. While the flash sales space is full of worthy competitors, clearly there is room for a number of sites to operate.
Beyond the Rack is a private online shopping club for women and men who want designer brand fashions and accessories at up to 70% off retail. We work with major brands to hold limited-time sales that are open exclusively to our members. Each sale starts at a specific time and typically lasts only 48 hours. Members are notified by email in advance of each upcoming sale.