Beyond the Rack, a private sample sale site, has raised $2 million in funding from Oleg Tscheltzoff and Oliver Jung, and Montreal Start Up. This brings the startup’s total funding to $4.5 million.
Similar to Gilt, 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 it is seeing 4 million monthly unique visitors, with revenue growing over 50 percent per month. And Beyond the Rack has 600,000 members after only 9 months of operation.
The site 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 site Ideeli recently raised $20 million in funding.
Gilt Groupe also raised an estimated $40 million in funding in July, which valued the company at $400 million. VC firm Kleiner Perkins recently invested in One Kings Lane, an online sample sale site for home decor and accessories, which we wrote about here. The concept has even attracted retail giants like Saks and Neiman Marcus, which are now jumping on the bandwagon to offer their own private sales.