RETAILEXCHANGE GETS $8 MILLION IN NEW FUNDING
NEW YORK — RetailExchange.com, a business-to-business site for unloading and buying excess merchandise, announced another round of funding of $8 million, bringing its total in equity financing to $19 million from Internet Capital Group, Gordon Bros. Group, LLC, Dorset Capital and Castile Ventures.
The funding is a planned additional infusion of $8 million in capital following the launch of its Web site, which currently has more than $100 million in inventory listed by hundreds of sellers in four merchandise categories. RetailExchange.com’s merchandise categories will expand in the next 90 days to include shoes, sporting goods, toys, health and beauty, and more, adding to the current listings of women’s, men’s and children’s apparel and home goods.
“Retailers have invested heavily in internal systems to help run their businesses, but now they are recognizing that there’s even more opportunity to improve both their margins and merchandise sourcing through Internet business-to-business transactions,” stated RetailExchange.com chief executive officer Kenneth Frieze.
RetailExchange.com’s continued leverage of its relationship with Gordon Bros., which last year facilitated the sale of more than $5 billion worth of consumer goods, has enabled the company to rapidly gain listings in its initial launch categories from many manufacturers. And hundreds of retailers have registered as users of the site.
In December, RetailExchange.com announced that it had received $11 million in equity financing from a consortium of investors led by Internet Capital Group and including Dorset Capital, Castile Ventures and Gordon Bros.
RetailExchange.com provides the platform, support services and functions necessary to enable buyers and sellers to independently and confidentially negotiate and transact the exchange of goods in an online marketplace. Based in Boston, RetailExchange.com has sales offices in New York, Los Angeles, Dallas and Miami.
Internet Capital Group is an Internet holding company engaged in business-to-business e-commerce through a network of partner companies.
Founded in 1903, Gordon Bros. provides retailers in North America and Europe with assistance in inventory and real estate disposition, equity and debt financing and strategic assessments. The company recently managed more than 5,000 stores for its client base, converting more than $5 billion worth of inventory and other assets into cash for retailers across the world. Gordon Bros. has offices in Boston, New York, Chicago and London.
Dorset Capital is a consumer-focused private equity firm that invests in growth companies in specialty retail, direct marketing, electronic commerce, restaurants, branded consumer products, consumer services and distribution.
Castile Ventures is a seed and early- stage venture capital firm investing in data networking, telecommunications and Internet enterprises.