Beyond the Rack, a Canada-based members-only apparel and accessories e-retailer, has received $2 million in funding.
The money comes from European Internet entrepreneurs Oleg Tscheltzoff and Oliver Jung, as well as Montreal-based venture fund Montreal Start Up. This new round of funding follows an earlier $2.5 million investment.
“The money will be used to fund the expansion the business– primarily in two areas–operations and marketing,” CEO Yona Shtern tells Internet Retailer. Shtern says he expects the business to grow 500% in 2010 to $100 million.
"We`ve steadily grown our revenue between 40% and 50% each month Shtern adds. "Our investors all recognize the importance of sustaining our rapid rate of growth, and this latest investment will allow us to continue to expand rapidly."
Beyond the Rack says it received 2.6 million unique visitors and 4.3 million total visits in December 2009. The retailer, which launches up to eight sales events each day, offers merchandise from more than 500 designer brands. Each sale lasts two days, and begins at 11:00 a.m. EST.
Beyond the Rack launched in early 2009 and has 75 full-time employees. It is based in Montreal.