Private investment firm Comvest Partners acquires the financially troubled e-retailer, which filed for Chapter 11 bankruptcy protection in March.
The young U.S.-based retailer has also moved into Australia and New Zealand.
Luxury flash sales retailer LuxeYard Inc., which was founded last year in California, announced this week that it will be opening for business online in India. The expansion follows moves into Australia and New Zealand in April.
LuxeYard is a members-only site that sells home décor, furnishings and fashion items. The e-retailer lets members determine what is sold on the site, and offers them discounts for sharing sales with friends.
The retailer aims to capitalize on the quickly growing e-commerce scene in India. A recent report from Forrester Research Inc. forecasts the country will see 53% e-commerce growth annually through 2016, when e-commerce sales will reach $8.8 billion. This year it will pass $1 billion, the report says.
"This exciting deal provides access to one of the fastest-growing e-commerce markets in the world, where rising consumer spending power and demand for luxury goods will combine to help us achieve our revenue goals and business objectives," says Braden Richter, CEO of LuxeYard.
LuxeYard says LuxeYard India is being established under a licensing deal with Indian technology and retail entrepreneur Sashi Chimala. "Our partnership is structured to immediately leverage our respective products, people and technology and will allow LuxeYard to enter the market quickly,” Richter says. “Over time it will also allow us to realize even more efficiencies and cost savings."
The retailer will offer Indian products on its U.S. site and U.S. products on the Indian site, LuxeYard says.