E-Tailer HauteLook Raises $31M in Funding
Online private-sale website HauteLook, based in Los Angeles, announced on June 3 that it has raised $31 million in funding through New York–based private equity firm Insight Venture Partners.
This is Insight Venture Partners’ second show of support for HauteLook, which provided $10 million in funding last year.
Since launching in December 2007, HauteLook has garnered 2.5 million members and has conducted more than 2,500 flash-sales events—short-term online sales promotions—featuring fashion brands such as BCBG, Herve Leger and Joe’s Jeans.
This latest round of funding will allow the company to accelerate its membership through online-marketing strategies; expand its business through new hires; and launch into other verticals and services, such as gourmet food, wine and spas.
“This allows us the ability to continue to get great executives and continue to grow our offerings to our customers,” said Chief Executive Officer Adam Bernhard.
HauteLook, which became profitable earlier this year, recently hired former Gap Inc. executive Arthur Lewis as general merchandise manager to further build stronger relationships with brands.
The company also is focused on continuing to cater to its core customer base of the casual, chic shopper. “We believe that our customers have chosen us because we most reflect their lifestyle,” Bernhard said.
Within the past two years—thanks to a crippling economic recession—flash-sale sites, which are moving beyond their initial purposes of assisting brands unload excess inventory, have been experiencing significant growth. Now private-sale sites are becoming a more prevalent destination point in the e-commerce marketplace.
On May 21, Reston, Va.–based online-marketing firm comScore Inc. released a report on the “State of the U.S. Online Retail Economy” through the first quarter of 2010. The report found that flash sales are continuing to grow, with users spending two to five times more than the average digital consumer.
“With flash sales, the engagement is at such a high level,” Bernhard said. “There is more sense of discovery for the customer every day as opposed to traditional, intent-based shopping.”—Connie Cho
