Gilt Groupe Now Valued At $1 Billion, A Number Cooler Than $1 Million
It’s no secret that Gilt Groupe is a really big deal in the retail world. In fact, the discount luxury e-tailer is such a big deal that it’s been valued at $1 billion. Yes, $1 billion. This number is especially impressive given that the young company is not yet profitable.
Founded in 2007, the company raised $138 million in its latest round of funding. It raised $35 million a year ago, at which point the company was valued at less than half a billion dollars. Investors include Softbank (a Japanese media conglomerate), Goldman Sachs, General Atlantic, and Matrix Partners. This round is thought to be their last of private funding, though the company does not intend to go public any time in the near future.
And while Gilt has yet to turn a profit, they are projected to earn $500 million from June 2010-2011. Besides, the company doesn’t consider profitability that important right now. Ironically, as the luxury sector recovers, Gilt is encountering problems due to a lack of excess merchandise. As such, they’re all about expansion, distancing themselves from the discount market — next on the docket are a gourmet food site and a full-priced men’s site.