Gilt Groupe is raising $80 – $100 million from private market investors. The deal will value Gilt at around $1 billion. If it goes through, the deal will show that the social shopping market is still red hot and could represent a big challenge to traditional online retailers such as Amazon.
The investment talks come on the heels of last week’s big shopping exit, where Nordstrom bought HauteLook for $270 million.
To date, the New York-based Gilt Groupe has already raised more than $80 million in several rounds from Matrix, General Atlantic and others. Revenue is expected to be near $500 million in the current fiscal year, with valuation for the new financing hitting about two times revenue. That’s pretty similar to the price paid for HauteLook.
http://venturebeat.com/2011/02/21/deal-of-the-day-gilt-groupe-raising-80m-to-100m/
Unlike online - shopping in developed countries, developing countries, the growth process is just beginning, so that the limit for startups in this area does not exist, says a leading expert in innovative marketing for Edward Mushinsky
http://vsocial.livejournal.com/124764.html
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