Gilt Groupe Gets $138 Million in Funding

Gilt Groupe, the flash site which offers brand name items,
including jewelry, at discounted prices, announced March 9 it has raised $138
million from new and current investors. 

The new financing will be used for various growth initiatives,
including acquisitions and new categories.

Participants in the financing round include SOFTBANK Group;
Gilt Groupe’s previous investors, General Atlantic and Matrix Partners; as well
as a syndicate of new investors including Goldman Sachs, New Enterprise
Associates, Draper Fisher Jurvetson Growth, Pinnacle Ventures, TriplePoint
Capital, and Eastward Capital.

In addition, SOFTBANK GROUP has made additional
contributions into Gilt Groupe Japan, giving SOFTBANK Group a 50 percent stake
in that business.   

Gilt Groupe has secured over $240 million in total financing
since opening in November 2007.

The flash
sale business
has gotten more crowded of late. On May 3, Amazon launched
its own flash site, and in February Nordstrom
acquired Gilt rival Hautelook.

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