New York-based Ideeli, a flash sales company founded in 2007, has raised $41 million in Series C funding led by Next World Capital with Cue Ball Capital and other investing firms participating in the round. The latest round brings the total funding of Ideeli to almost $70 million.
Ideeli offers 50 to 70 percent discounts on clothing and accessories over a period of several days to over 4 million members. The sales are private, available only to members, with forthcoming sales from brands announced to its members via emails. Products involve clothing for men, women and children as well as jewelry, handbags and home accessories.
Recently, Ideeli expanded into travel and daily deals, akin to Gilt Groupe’s Gilt City deals. Ideeli hopes the new financing will help expand their categories, partnerships, technology enhancements, marketing campaigns, attracting talent and enhancing the Ideeli member experience by improving on service.
According to TechCrunch, the flash sales space has proven to be a big venture . One of the leaders in the space, Gilt Groupe, has been raising huge amounts of money, growing its user base at a rapid pace and turning a strong profit. In December, Gilt raised another $15 million, bringing the company’s total funding to nearly $100 million. At one time, Gilt was valued at $400 million.
One Kings Lane, which focuses on using the flash sales model for home accessories and furniture, has also recently raised a large round. And Ideeli competitor HauteLook (which also reports 4 million members) was acquired by Nordstrom for $270 million.