Luxury online retailer Gilt Groupe has been preparing for an IPO for a year now, but didn’t have enough cash.Now the retailer says it has raised another $50 million from venture backers.
Founded in 2007, Gilt is a New York-based e-commerce retailer that holds flash sales of discounted luxury items from clothing to home décor. The $50 million infusion brings Gilt’s total amount raised to about $250 million.
Gilt has had its up and downs, laying off about 10 percent of its workforce in early 2012, only six months after grabbing a $138 million financing round in mid-2011, according to Crain’s. Before that, Gilt had secured $35 million in funding in 2010, and another $43 million in 2009, according to regulatory filings.
Gilt has long been expected to seek an initial public offering. Crain’s cited sources who say the company’s performance hasn’t been consistent enough to “convince leadership” it should be taken public, at least not yet.
Gilt is similar to Zulily. The Seattle-based company has lost 62% of its value since going public in November 2013.