Secret Sales has secured €10m in Series A funding as they accelerate plans to become the largest off price online fashion and beauty marketplace worldwide. Their big attraction to brands is the ability to clear stock at a discount whilst retaining their brand ethos and experience.
The investment round, completed following stellar growth during Secret Sales’ first year in business as a fashion and beauty marketplace, was led by the family-backed private equity and growth capital investor Perwyn Growth Capital and supported by Belerion Capital, the ecommerce investment specialist and early stage investor in ASOS, The Hut Group and Boohoo.
Secret Sales will use the money to advance technological development, scaling their ecommerce platform to compete as a huge global player in the discount retail space. The marketplace will expand its UK operation alongside launching in new territories in 2021, bringing hundreds more brands and retailers onboard to drive both domestic and international growth.
The investment will also enable Secret Sales to improve data mining capabilities to optimise user experience on the platform, which in turn will increase sales and customer engagement for its brand and retail partners.
“Our Series A funding round from experienced investors validates the significant opportunity for Secret Sales’ business model worldwide, and will allow us to meet increasing demand from brands and retailers looking for an upmarket, profitable and sustainable way to sell non full price inventory. Following an exceptional first year, we are now ready to accelerate domestic and international operations, spearheading a new era for the discount sector.”
– Chris Griffin, CEO, Secret Sales
Premium off-price ecommerce marketplace Secret Sales has grown by 4,000% since launching in March 2020, and is currently showcasing over 700 brands on its platform. It is due to go live in six further countries in the next year.
The marketplace’s unique business model enables fashion houses to clear off price fashion and beauty lines in a brand-enhancing environment, while driving new customer acquisition via a GDPR-compliant opt-in where customers can choose to hear directly from brands’ full price channels.
Brands on Secret Sales
Dolce & Gabbana, Versace 19v69, G-Star Raw, Superdry, Ted Baker and Jigsaw are among brands selling on the platform alongside premium retailers including YNAP, Harvey Nichols, JD Sports Group and high street jewellery business F Hinds. Many have appointed Secret Sales as their sole or primary discount channel in the UK.
“We are thrilled to have closed this funding round and to embark upon the next stage of our amazing journey. We are fast becoming the dominant platform that puts ‘brand’ first in the non full price space, providing brands and retailers with a route to market to sell overstock quickly and profitably every season, while preserving and growing rather than eroding brand equity.
Holding onto stock for too long is costly. By partnering with Secret Sales, sell-through can be optimised in real time. The investment will further enable us to innovate and deploy proprietary data AI to help fashion houses sell discounted inventory faster, supporting cleaner inventory in season, gaining higher margins and introducing new gateway consumers to their own channels. It’s time for the industry to reset and to stop thinking about non full price stock solely in terms of cash recovery. We are the platform that will enable this for thousands of brands globally.”
– Matt Purt, co-owner, Secret Sales