E-retail has grown more than 50% so far this year for the department store chain. Belk plans to spend $32 million on the project.
Beyond The Rack racks up another big round of financing
Investors will pour $36.6 million into the private-sale web retailer.
Private-sale online retailer Beyond The Rack continues to attract more investment money.
This time Beyond The Rack, No. 191 in the Internet Retailer Top 500 Guide, has secured $36.6 million in new working capital from private equity firms including Panorama Capital, Export Development Canada, Tandem Expansion Fund, Rho Canada and Inovia Capital.
Beyond The Rack, which in October launched BTR Home as an expanded section on its web site that will sell housewares and home furnishings, will use the new round of capital to continue to expand its base of more than 5 million customers in North America, says CEO Yona Shtern.
“This significant funding will allow us to continue to maintain our leadership position in both Canada and the U.S." says Shtern. "We are extremely appreciative of the continued support from our existing shareholders and are thrilled to add such highly respected investors.”
The latest round of investment money brings to more than $48 million the funds the company has raised this year. In July, Beyond The Rack raised $12 million in new funding from venture capital firms Highland Capital Partners LLC and BDC Venture Capital Inc.
Investors are attracted to Beyond The Rack because the company is able to grow aggressively in a short period of time, says Highland Capital general partner Dan Nova. “Watching Beyond the Rack transform from a small start-up into North America's market leader over such a short period of time has been extremely gratifying,” says Nova.
Beyond The Rack has attracted over 5 million consumer members and over 3,000 brand partners to its online flash-sale marketplace since launching in 2009, the company says.