海角视频 discount fashion and beauty platform Secret Sales has secured €10m (£8.5m) in Series A funding.
The investment round follows a year of growth for the Cheltenham-based company, which was acquired by retail entrepreneurs Chris Griffin and Matt Purt in March 2020.
The duo have turned the business from a members-only flash sales website to a dedicated marketplace for some of the 海角视频’s biggest brands, including Dolce & Gabbana, Superdry, Ted Baker and Jigsaw.
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The round was led by family-backed private equity and growth capital investor Perwyn Growth Capital and supported by Belerion Capital, the ecommerce investment specialist and early-stage investor in ASOS, The Hut Group and Boohoo.
Secret Sales said it would use the money to scale its ecommerce platform and expand its operations in the 海角视频 and overseas. The business is also planning to launch into new territories in 2021 and bring on board hundreds more brands and retailers, it said.
Secret Sales has grown by 4,000% since relaunching last year and now has 700 brands on its platform. It is due to go live in six more countries in the next year.
“Following an exceptional first year, we are now ready to accelerate domestic and international operations, spearheading a new era for the discount sector,” said Mr Griffin.
“Our Series A funding round from experienced investors validates the significant opportunity for Secret Sales’ business model worldwide, and will allow us to meet increasing demand from brands and retailers looking for an upmarket, profitable and sustainable way to sell non-full-price inventory.”
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The marketplace’s unique business model enables fashion houses to clear non-full-price items, while driving new customer acquisition through a GDPR-compliant opt-in where customers can choose to hear directly from brands’ full price channels.
“Secret Sales is revolutionising the way brands deal with excess stock through a technology-driven, capital light model,” said Iain McDonald, founder at Belerion Capital.
“We are very happy to support the team as the business begins its next stage of growth.
Investec advised LRG Online Limited, trading as Secret Sales, on the fundraising venture. Perwyn was advised by Grant Thornton (financial), Weightmans (legal), Digital Pathfinders (technology), Performify (digital marketing) and Miriam Lahage (commercial).
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Matt Purt, co-owner of Secret Sales, added: “We are thrilled to have closed this funding round and to embark upon the next stage of our amazing journey.
“We are fast becoming the dominant platform that puts 'brand' first in the non-full-price space, providing brands and retailers with a route to market to sell overstock quickly and profitably.”
Secret Sales said 18 million unique users had visited its website during its first year trading as a marketplace. The website also has 5.5 million registered account holders.