Beyond the Rack, the online flash sale leader in Canada, has closed on a new $36 million investment round led by Silicon Valley-based Panorama Capital.
Other investors in the current round include Export Development Canada, Tandem Expansion Fund, Rho Canada and Inovia Capital. Existing investors from an earlier round, Highland Capital Partners and BDC Venture Capital also were participants.
The e-commerce site so far has raised $53 million in total. This is the firm’s third round of fund-raising. The current round is the second one with institutional investors. The first institutional round was in the summer of 2010, and before that was a seed round.
Yona Shtern, founder and chief executive officer of Beyond the Rack, said, the company is “cash flow positive.” He emphasized the round was needed to expand the firm in three areas: automation and technology, acceleration of marketing and acquisitions.
The firm ships 8,000 packages a day now, and expects to ramp up to 16,000 packages a day next year, according to Shtern. “That requires a fairly sizeable investment in logistics to scale the back end,” the ceo said.
As for acquisitions, he said the firm has already acquired three competitor sites. One was Top Button, acquired November 2010, which operated out of New York. The other two he declined to disclose since they were private placements. Shtern isn’t just looking at other flash sale sites as acquisition targets. “We service 12 different merchandise categories. We’re not in the travel space. There are quite a few other e-commerce models [we’re thinking about], whether [we] get there organically or buy our way in,” Shtern said.
Beyond the Rack targets the demographic that typically shops at TJ Maxx.
“In targeting a much broader segment of consumers, we see an opportunity to build a very substantial company and are delighted to join forces to further expand its thriving business,” said Shahan Soghikian, managing director at Panorama. Soghikian will join Beyond the Rack’s board.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast