Ice.com raises a cool $47 million in new working capital
Ice.com Inc. has raised $47 million in outside venture capital the company will use to expand further into the affordable luxury goods market.
The money, which Ice.com secured from Boston investment banking firm Polaris Venture Partners, will enable Ice.com to consider acquisitions, build up its e-commerce infrastructure and target new niches in affordable luxury goods.
As part of the new funding arrangement, Polaris managing general partner and former Washington Post Co. president Alan Spoon will take a seat on the Ice.com board of directors.
Ice.com, No. 182 in the Internet Retailer Top 500 Guide, has grown organically, says CEO Shmuel Gniwisch. Now, with more funding, Ice.com will look for more opportunities in affordable luxury goods. "We still think we can grow this company 40% to 50% organically, but would like to take more market share quicker and we have the mix to do it," says Gniwisch. "We plan on building out this business into the best destination on the web for jewelry. Once we have done that we will look to sell the same items to more people."
Holiday season sales were up 60% and average order value up 25% on Ice.com and 21% on sister site Diamond.com, the company reports.
“We see Ice.com growing into a company with more than $100 million in annual revenue,” says Gniwisch. “To obtain that goal, we are obtaining more capital.”
Ice.com, which grew its 2007 web sales by about 70% to $83.4 million, sees a growing market for online buyers of luxury goods that want to trade up for higher priced items as their purchasing habits change and their annual income grows. “We’ve barely scratched the surface of this market and there is plenty of opportunity ahead,” says Gniwisch. “We need smart capital to grow appropriately to the next level to make the most of that opportunity.”
Mayer Gniwisch, president and co-founder of Ice.com, will speak at the Internet Retailer Web Design ’08 Conference, Jan. 30-Feb. 1 in Miami, in a session entitled How to get feedback to help with your redesign.
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